Reduced tariffs for natural gas and gas distribution services became effective in Ukraine on February 1, 2021.
"From now on, the ceiling rate for gas delivery is UAH 1.79 [US$0.06] per cubic meter," the Ukrainian TSN TV news service reported on Monday.
Read alsoRada instructs Cabinet to resolve issue with high tariffsThe rate was set by Ukraine's National Energy and Utilities Regulation Commission (NEURC) for 13 regional gas distribution companies.
"This tariff comes into effect today and will be applicable until the end of the [coronavirus] quarantine or the heating season," the report said.
The price of natural gas was also cut, as the government had reduced its cap price for households to UAH 6.99 (US$0.25) per cubic meter.
So, households will see a 30% decline in their utility bills.
Background
On January 25, Prime Minister Denys Shmyhal outlined eight steps the government had taken to regulate utility tariffs in Ukraine:
- The maximum price of gas will not exceed UAH 6.99 per cubic meter from February 1 to the end of the heating season;
- Tariffs for heat and hot water will not change until the end of the heating season;
- A resolution was adopted that the NEURC limits the gas distribution tariff to UAH 1.79 per cubic meter;
- The government together with the parliamentary committee initiates the adoption of a bill on transferring gas distribution companies to local self-government agencies, which will ensure fair pricing of gas distribution;
- Ukrainian citizens will not pay fines or penalties if they fail to pay on time for gas and heat supplied in January;
- Findings of the Antimonopoly Committee's probe into the establishment of transparent and fair rules on the gas market are expected;
- The Cabinet of Ministers will decide on compensation for households that have full electric heating; and
- The main product of gas distribution companies will be the annual default product, i.e. the price of gas will be set once a year, as is the case in most European countries.