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EBA urges the NEURC to prevent the disconnection of vulnerable consumers from gas supply

01/ 07/ 2021
  The European Business Association draws attention to the crisis that may arise in the natural gas market of Ukraine during the heating season. We are referring to the possible situation in which the district heating companies are supplied with natural gas from the so-called supplier of last resort, provided that the previous supplier initiated the procedure of disconnection of such consumer from gas. Thus, the business community calls on the National Energy and Utilities Regulatory Commission to resolve the situation and prevent the disconnection of district heating companies, especially in the autumn-winter period. With the consideration of the large debts owed by district heating companies, the EBA Energy Committee experts are still of the opinion that the termination of gas supply may have negative consequences, namely the disruption of the next heating season, deprivation of a significant number of consumers of heat and hot water, accidents on district heating grids, and even the risk of a man-made disaster. Thus, the only possible way to resolve this situation is to use the mechanism of the supplier of last resort to prevent a situation where socially important district heating companies can be disconnected from the gas supply. It should be noted that during the heating period of 2020-2021, the gas distribution system operators performed a social function and did not cut off gas to those consumers who were left without an effective supplier, namely, as a result of the decentralization of power within local communities. Therefore, the business appeals to the National Energy and Utilities Regulatory Commission to resolve the above situation, to prevent the disconnection of socially important companies, institutions, organizations, including hospitals, schools, kindergartens, boarding schools, etc. from gas supply, especially during subsequent autumn-winter periods. The European Business Association submitted its proposals to the Draft Resolution, in particular, in the part regarding the alignment of the terms of natural gas supply to district heating companies by the supplier of last resort with the Law on Natural Gas Market (№329-VIII). We hope the voice of business will be heard!

The European Business Association draws attention to the crisis that may arise in the natural gas market of Ukraine during the heating season. We are referring to the possible situation in which the district heating companies are supplied with natural gas from the so-called supplier of last resort, provided that the previous supplier initiated the procedure of disconnection of such consumer from gas.

Thus, the business community calls on the National Energy and Utilities Regulatory Commission to resolve the situation and prevent the disconnection of district heating companies, especially in the autumn-winter period. With the consideration of the large debts owed by district heating companies, the EBA Energy Committee experts are still of the opinion that the termination of gas supply may have negative consequences, namely the disruption of the next heating season, deprivation of a significant number of consumers of heat and hot water, accidents on district heating grids, and even the risk of a man-made disaster.

Thus, the only possible way to resolve this situation is to use the mechanism of the supplier of “last resort” to prevent a situation where socially important district heating companies can be disconnected from the gas supply.

It should be noted that during the heating period of 2020-2021, the gas distribution system operators performed a social function and did not cut off gas to those consumers who were left without an effective supplier, namely, as a result of the decentralization of power within local communities.

Therefore, the business appeals to the National Energy and Utilities Regulatory Commission to resolve the above situation, to prevent the disconnection of socially important companies, institutions, organizations, including hospitals, schools, kindergartens, boarding schools, etc. from gas supply, especially during subsequent autumn-winter periods.

The European Business Association submitted its proposals to the Draft Resolution, in particular, in the part regarding the alignment of the terms of natural gas supply to district heating companies by the supplier of last resort with the Law on Natural Gas Market (№329-VIII). We hope the voice of business will be heard!

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