Gas transmission to households rises in price from Jan 1

Gas transmission tariffs for Ukrainian households have risen in price from January 1, 2021.

Read alsoGas price for households rises by over 14% from Jan 1The relevant projects of new prices were approved by the National Energy and Utilities Regulation Commission (NEURC).

In particular, NEURC approved tariffs for 22 regional gas companies for 2021, and prices will rise in 20 of them.

The decision to increase tariffs is explained by the fact that it is necessary to compensate for the tariff revenue lost by regional gas companies in 2015-2019, as well as compensating for the costs associated with the gap in prices when purchasing natural gas in 2015-2019, necessary to meet production and technological needs.

Background

• The average cost of gas for households in November against October increased by 24%, from UAH 5.77 hryvnia (US$0.21) to UAH 7.16 (US$0.26) per cubic meter.
• Since January 2020, Ukrainians have been receiving a separate bill for gas transmission by distribution companies. The bill has been received including by consumers who do not use gas in their household, as well as newly-signed consumers.
• On December 24, 2019, NEURC approved an increase in tariffs for services of 44 gas distribution companies in Ukraine during the first half of 2020 – from 30% to 60%, depending on the company.