4 April 2017
Newsletter

Ukraine adopts tariffs for natural gas transmission and distribution

On 28 March 2017 the National Commission for the State Regulation in the Energy and Utilities of Ukraine ("NEURC") adopted Resolution No. 348 "On establishing the tariffs for PJSC "Ukrtransgaz" for transportation of natural gas for consumers of Ukraine for entry and exit points" ("Resolution on transmission tariffs") and individual Resolutions for distribution companies on tariffs for distribution of gas. These Resolutions came into force on 1 April 2017.

The key purpose of these Resolutions is separation of tariffs for natural gas transmission and distribution from the cost of natural gas as a commodity.

The Resolution on transmission tariffs sets the following tariffs for transmission of natural gas applicable for customers in Ukraine for entry points of and exit points of gas transportation system (GTS) operated by PJSC "Ukrtransgaz":

No.

Name of entry point to the GTS/
exit point from the GTS

Tariff for entry point
(UAH/ 1,000 m3 per day)

Tariff for exit point
(UAH/ 1,000 m3 per day)

1.

Entry points at physical location (a) of natural gas fields, (b) biogas or other gas from alternative sources production facilities

296.80 (app. USD 10.98)

N/A

2.

Virtual entry point from gas distribution system or a group of gas distribution systems (place of gas supply from gas-production companies or producers of biogas,
connected to the gas distribution system)

296.80 (app. USD 10.98)

N/A

3.

Virtual entry point from group of gas-production companies

296.80
(app. USD 10.98)

N/A

4.

Virtual points connected with a natural gas storage or groups of gas storages / Points with physical location to or from gas storage facilities/ Virtual point at which the transfer of natural gas takes place

0.00

0.00

5.

Virtual exit point for operations conducted by GTS operator related to purchase by GTS operator of natural gas for its own operational and technical needs

N/A

0.00

6.

Exit point to direct consumers

N/A

322.10
(app. USD 11.9)

7.

Virtual exit point to distribution system of distribution companies

N/A

From 76.90 to 192.25
(app. USD 2.84- 7.1)


The Resolutions for distribution companies set distribution tariffs for household and non-household customers.

Taking into account public disappointment that new tariffs will increase gas bills for household customers and based on requests from the President of Ukraine and the Government, on 10 April 2017 NEURC will hold a public hearing to review the tariffs. In addition, NEURC plans to organize further consultations with the Government of Ukraine regarding extension of utility subsidies for gas transmission and distribution services.


For further information please contact Asters' counsel Yaroslav Petrov.

© Asters 2017
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