Ukraine's energy regulator halves fines for over-limit gas distribution

Ukraine's National Energy and Utilities Regulation Commission (NEURC) has reduced fines related to gas consumer enterprises for exceeding actual annual gas consumption over the annual capacity ordered by a consumer, namely from 100% to 50% of the over-limit gas distribution cost.

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The NEURC has also significantly extended the deadline for filing the adjustment of the ordered capacity from July 23 to September 15, according to the regulator's website.

Tolerable deviation

On August 26, 2020, the NEURC approved amendments to the Gas Transmission System Code and the Gas Distribution Systems Code, providing for a reduction in the permissible amount of imbalance deviation for customers of gas transportation services.

According to the relevant document, the tolerable deviation for customers of transportation services is reduced from 10% to 3%, as well as from 15% to 7.5% for customers of transportation services who are operators of the gas distribution systems.

In addition, a differentiated approach is proposed to determine the tolerable deviation depending on the volume of the imbalance.

Gas market

• A competitive gas market for households was launched in Ukraine on August 1, 2020.
• The average price of imported natural gas paid by Ukraine in July 2020 was US$140.60 per 1,000 cubic meters, which was 60% up from June 2020.