The issue of protected gas consumers is partially resolved, but business asks to bring it to the end

12/ 07/ 2021

On July 8, a Resolution was adopted at a meeting of the National Energy and Utilities Regulatory Commission. It implies the possibility of supplying natural gas to district heating providers (DHP) by the supplier of last resort. This decision will avoid a crisis situation and man-made disasters that may occur in the natural gas market of Ukraine in the autumn-winter period. Besides, this decision will provide an opportunity to supply natural gas to DHP companies as a last resort, provided that the previous supplier initiated a procedure to disconnect such consumers from gas, which will prevent a situation where socially important DHP can be disconnected from the gas supply. At the beginning of July, the European Business Association addressed the NEURC with proposals for a draft Resolution regarding the terms of natural gas supply to DHP by the last resort supplier, as well as the need to protect all categories of consumers defined by the Law on Natural Gas Market. However, the decision of the National Energy and Utilities Regulatory Commission of July 8 did not fully ensure compliance of the Resolution with the provisions of the Law of Ukraine on the Natural Gas Market. Thus, the business community draws the attention of the Regulator to the need to fully bring the rules of this regulatory act to the provisions of the relevant law. Besides, it is a question of extending the effect of the changes introduced by the Resolution to all consumers who fall into the category of protected, including hospitals, schools, kindergartens, boarding schools, etc. Therefore, the European Business Association expresses its gratitude to the Regulator for resolving this crucial issue for the gas sector and calls on the NEURC to achieve a balance of interests between all participants in the natural gas market, as well as to avoid discrepancies in the application of current legislation.

This decision will avoid a crisis situation and man-made disasters that may occur in the natural gas market of Ukraine in the autumn-winter period. Besides, this decision will provide an opportunity to supply natural gas to DHP companies as a “last resort”, provided that the previous supplier initiated a procedure to disconnect such consumers from gas, which will prevent a situation where socially important DHP can be disconnected from the gas supply.

At the beginning of July, the European Business Association addressed the NEURC with proposals for a draft Resolution regarding the terms of natural gas supply to DHP by the “last resort” supplier, as well as the need to protect all categories of consumers defined by the Law on Natural Gas Market.

However, the decision of the National Energy and Utilities Regulatory Commission of July 8 did not fully ensure compliance of the Resolution with the provisions of the Law of Ukraine on the Natural Gas Market.

Thus, the business community draws the attention of the Regulator to the need to fully bring the rules of this regulatory act to the provisions of the relevant law. Besides, it is a question of extending the effect of the changes introduced by the Resolution to all consumers who fall into the category of protected, including hospitals, schools, kindergartens, boarding schools, etc.

Therefore, the European Business Association expresses its gratitude to the Regulator for resolving this crucial issue for the gas sector and calls on the NEURC to achieve a balance of interests between all participants in the natural gas market, as well as to avoid discrepancies in the application of current legislation.