Debt for imbalances to OGTSU increased to UAH 870 million in January-February

In February 2020, market participants additionally allocated 111 million cubic meters of natural gas from the GTS, but offset the cost of only 25% of the volume. This was reported by the press service.

The company reports that the total debt for imbalances increased to UAH 870 million for the first two months of 2020.

Negative imbalances

In January-February, negative imbalances of market participants were accrued in the amount of 235 million cubic meters of gas totaling UAH 1 billion 426 million.

Of these, gas production companies account for 4.5 million cubic meters, the share of gas suppliers is 86.5 million cubic meters, and the main volume of negative imbalances (61%) falls on the operators of gas distribution networks – 144.0 million cubic meters of gas.

Positive imbalances

During this period, the positive imbalances of market participants amounted to 484 million cubic meters of gas, which corresponds to UAH 2 billion 626 million. In January-February, 99% of positive imbalances were created by gas suppliers – 477 million cubic meters. Gas production companies account for 6.3 million cubic meters, and for gas distribution network operators – only 0.2 million cubic meters.

Settlements for unbalances

The Ukrainian GTS Operator has fully paid off market participants for positive imbalances.

At the same time, the volume of settlements for negative imbalances to the GTS Operator was only 39% as of March 23. It is noted that 99% or UAH 867 million of debt was accumulated solely by gas distribution network operators.

“Of particular concern is the situation with a significant amount of debts due to imbalances in Luhanskgaz, Ternopilgorgaz, Kyivoblgaz and Kirovohradgaz. The inaction of the management of these companies jeopardizes gas supply to their consumers. The operator of the gas transmission system of Ukraine has already sent letters to the local administrations and the NEURC with a request to pay attention to the activities of these enterprises and their fulfillment of licensing conditions”, the statement said.

In February, the volume of new unpaid imbalances decreased, which was mainly due to a decrease in gas prices. This allowed gas distribution network operators to purchase additional volumes of gas to cover their own production costs. But such a reduction in imbalances is not systemic. Therefore, if the market price of gas increases, one should also expect an increase in the size of unpaid imbalances.

The GTS operator offered NEURC to make the necessary changes to the corresponding network codes for a systematic solution to this problem.

To recap, in January 2020, the debt to OGTSU for imbalances amounted to UAH 580 million.

Earlier it was reported that OGTSU accused DTEK of unauthorized gas withdrawal for UAH 318 million.

Tags: The Cabinet of Ministers, gas, DTEK, Naftogaz, contracts, hydrocarbon production, tariffs, legislation, NEURC, The Minystry of Energy and Coal Mining, energy market, gas production, debt, heating season, unbundling, Gas market, облгаз, GTS Operator, price, Makohon, OGTSU, energy sector, natural gas, gas imbalances, gas supply, DNO, regional power distribution company

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