You're reading: Government approves core business of Naftogaz for 2021

The Cabinet of Ministers of Ukraine has approved five main areas of activity of NJSC Naftogaz Ukrainy for 2021 within the framework of a meeting of shareholders.

According to Cabinet Resolution No. 1011 of September 27, the text of which was published on the government portal, Naftogaz must create balancing groups for natural gas suppliers to household consumers (population), whose members can purchase gas from the company in volumes sufficient for the needs of the latter at a fixed price for the period until May 1, 2022.

Naftogaz aims also to supply gas to operators of gas distribution networks (regional gas companies) to cover production and technological losses in accordance with the terms of setting tariffs for gas distribution.

Naftogaz will facilitate the transition to a new model of payments for natural gas by the population when each month such a consumer pays 1/12 of the expected annual cost of consumed gas, calculated in accordance with the consumption profile.

In addition, the company must set the terms of settlements in contracts for the supply of natural gas to heat-generating enterprises and operators of gas distribution stations, as well as in contracts for the sale of gas to the population in accordance with the terms of settlements of household consumers.

Naftogaz should also conclude energy service contracts with consumers that are financed from the state and local budgets and receive services for the centralized supply of heat, which will allow such consumers not to increase their costs due to the implementation of energy efficiency measures.