Business response to NKREKP decision to change approaches to calculation for natural gas distribution services

21/ 10/ 2019

The European Business Association supports the adopted and published decree of NKREKP #2080, which provides changes to approach of calculations for natural gas distribution services and tariff setting procedures for gas distribution system operators. The decree came into force on October 12, 2019.

Thus, the experts of the Association are convinced that the approach proposed in this document has a number of significant advantages:

  • Promote unify approach to tariff formation of gas market operators in Ukraine.
  • It is more understandable for the representatives of the industry, since the mechanism of the ordered capacity is already implemented in the natural gas market for the gas transmission system operator.
  • Reduce the financial burden on the consumer during the heating period.
  • Ensure a steady flow of funds to gas distribution network operators throughout the year, and thus allow more efficient planning of its operations and maintenance of gas distribution systems.
  • Allow industrial consumers to order the amount of power on their own, while remaining responsible for its excess.

At the same time, based on current situation on the energy market, absence of a quorum in the NKREKP decisions, the European Business Association hopes for the appointment of a new members of the regulator in order to fully implement the norms of the adopted Regulation concerning adjusting the tariffs of gas distribution system operators.

Taking into account these facts, the business community is grateful to the NKREKP for its consistent position in supporting the gas industry, in particular, for increasing transparency and predictability of the natural gas market and looks forward to the fullest possible resumption of the NKREKP operation.

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