Prime Minister of Ukraine Denys Shmygal announced plans to significantly reduce gas tariffs for the population and two approaches to solving this problem, developed in pursuance of the instructions of the President of Ukraine at a meeting with the leadership of the Ministry of Energy, NJSC Naftogaz Ukrainy, NEURC, Gas Transmission System Operator of Ukraine and representatives of the President’s Office.
“The first approach is the formation of gas tariffs according to the formula ‘price at European hubs minus gas transportation to Ukraine’ proposed by the Ministry of Energy. In addition, it is proposed to temporarily limit the margin for gas suppliers. Expected result: a significant reduction in tariffs and leveling the attempts of speculators to maintain super-profits in the context of the formation of new European rules,” Shmyhal wrote in his Telegram channel on Jan. 11 evening.
The second approach, according to him, which is proposed by Naftogaz, is to increase competition in the market by obligatory publication by all gas supply companies of their annual gas tariff, as Naftogaz is already doing. “In addition, it is proposed that gas supply companies begin to actively compete for the consumer base, which will lead to a decrease in tariffs within the framework of open tenders. Expected result: increased competition and, as a result, a significant decrease in payments for Ukrainians,” the prime minister wrote.
According to Shmygal, as a result of a meeting with the responsible departments, a mechanism was formed that would reduce the price of gas transportation.
The prime minister also announced the urgent start of inspections by NEURC of all gas suppliers, who currently have the highest tariffs for this service.
The head of government said that in Ukraine, 3.1 million households receive subsidies for utilities, and the average amount of charges in November 2020 amounted to Hr 1,600, which is almost Hr 250 more than in 2019. “This is a fair state policy that will continue along with the increase in wages and the program to restore the economy,” Shmygal said.
