Ukrainian households to be switched to annual gas contract from May 1

The National Energy and Utilities Regulatory Commission of Ukraine (NEURC) has finally approved a resolution regulating the terms of an annual contract on the supply of natural gas to households, which will be mandatory for all private consumers from May 1, 2021.

The resolution was passed at the regulator's meeting on April 7, according to an UNIAN correspondent.

Read alsoNaftogaz could be forced to freeze gas price for households"The introduction of an annual contract for Ukrainian consumers is a super important decision. From May 1, the annual price will be introduced by default. That is, all consumers will receive an annual gas price. This will eliminate the turbulence related to gas prices. The price will be the same," NEURC head Valeriy Tarasiuk said.

Thus, the National Commission obliged all gas supply companies to publish gas prices for consumers, which will be valid May 1, 2021, through April 30, 2022, on their websites by April 25.

So, all households will be transferred to services under an annual contract from May 1 automatically, without the need to submit additional documents. Gas companies are also allowed to offer citizens monthly gas tariffs.

To this end, a consumer will have to submit an appropriate application. Moreover, the households have the right to switch to another gas supplier at any time of the annual price validity term.

The regulator has obliged the supplier to notify the consumer of the change in the tariff plan in the same form in which the application was received from the latter, including the electronic version.

At the same time, the NEURC has allowed gas supply companies to decide for themselves whether to allow the consumer to return to the annual contract after the transition to the monthly price terms. Also, the supplier has the right to decide whether to take back a customer who has selected another supplier.

The regulator noted that during the validity of the annual contract, suppliers are not prohibited from changing the price downwards, but they shall not increase it.

Background

• At the end of January, the government set the ceiling price of gas at UAH 6.99 (US$0.25) per cubic meter, which expired on March 31, 2021.
• Gas supply companies offered households to buy gas in April at a tariff within UAH 6.75-8.85 (US$0.24-0.32) per cubic meter.
• To prevent gas price hikes, the government has proposed that gas suppliers be required to switch all their households to services under an annual contract from May 1.
• Experts say gas suppliers may offer households a gas price exceeding UAH 8 (US$0.29) per cubic meter under an annual contract.
• On April 2, 2021, the NEURC published a draft resolution governing the annual gas supply contract for households, which will be received by default by all consumers from May 1, 2021.