NJSC Naftogaz of Ukraine extended the term for making a decision to refuse the guaranteed quarterly price for several days – from December 24 to December 30, 2019. This was reported by the press service.
“Consumers who want to abandon the guaranteed quarterly price can turn to their regional distribution companies. They will offer an exit program that will be convenient for the client. Customer service centers will be open until December 28, and in personal accounts, despite holidays and weekends, the option will be available until December 30”, the message says.
Starting January 1, 2020, for consumers entitled to purchase gas under preferential terms (PSO), two price offers for gas from Naftogaz will be valid: quarterly and monthly. Quarterly wholesale price, fixed at UAH 5 500 per thousand cubic meters (excluding VAT, transmission costs and gas sales margins), will be valid automatically for all protected consumers until the end of the heating season.
The monthly wholesale price for such consumers in January 2020 will be UAH 5 500 per thousand cubic meters (excluding VAT, gas sales margins and gas transmission costs by main and distribution pipelines).
The monthly price in the following months of the heating season may be higher than the guaranteed price, and lower. Until December 30, consumers must decide at what price they will buy gas during the heating season: fixed for the whole quarter or monthly, which will fluctuate in accordance with external factors. For those consumers who refuse the guaranteed quarterly price, there will be no possibility to return back to the program after December 30.
Both mechanisms – monthly and guaranteed prices comply with IMF requirements. According to international obligations, from January 1, 2020, Ukraine will switch to market gas pricing for domestic consumers on PSO. Since May 1, 2020, Ukraine has committed itself to completely liberalize the gas supply market to domestic consumers and to provide conditions for competition in this segment.
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