Naftogaz stressed it fully complied with the terms of the Memorandum, despite the statements of the AUC

NJSC Naftogaz of Ukraine stated that it fully complied with its obligations under the Memorandum of Understanding on resolving problematic issues in the heat energy and hot water supply during the 2021/2022heating season.

“Naftogaz draws attention to the need to fulfil the obligations assumed by all signatories to the Memorandum, in particular from local authorities,” the statement says.

The company recalled that following the Memorandum, Naftogaz:

- ensured the gas price of UAH 7.4 per cubic meter (including VAT, excluding transportation costs) for the needs of the population;

- provided a price of UAH 13.7 per cubic meter (excluding VAT and excluding transportation costs) for the needs of budgetary institutions;

- provided for payment by instalments for 45 days to settle for gas used for the needs of the population.

At the same time, local authorities have to take the steps provided for in the Memorandum:

- to determine and allocate compensation for the difference in tariffs from the local budget to the district heating companies. Such compensation is essential to make it possible for district heating companies not to increase heat tariffs for the needs of the population and fully pay for gas received for the needs of the population at a price of UAH 7.4/cubic meter;

- to bring tariffs for heat and hot water supply for budgetary organizations in line with the gas price of UAH 13.7 per cubic meter;

- to bring tariffs for heat and hot water supply for commercial companies in line with the current market price.

“The volumes of gas supplied by Naftogaz to district heating companies and gas supply companies at a price of UAH 7.4 per cubic meter to cover the needs of the population correspond to the volumes of the company's gas production. Naftogaz is working to increase its own gas production…” the company emphasized.

Накануне Ассоциация городов Украины заявила, что объемов газа, которые будет поставлять Нафтогаз по льготной цене, громадам не хватит для прохождения отопительного сезона.

Earlier the Association of Ukrainian Cities had announced that the volumes of gas that Naftogaz would supply at a reduced price would not be enough for the communities to pass the heating season.

“NJSC Naftogaz, at its discretion, determined the volumes of natural gas that will be supplied to district heating companies at the price stipulated by the memorandum to ensure heat supply to household consumers of budgetary institutions. As predicted by local authorities, district heating companies, as well as the Association of Ukrainian Cities, in certain periods of the heating season, such volumes may not be enough,” the Association said in a statement.

At the end of September, local authorities, NJSC Naftogaz of Ukraine and the Cabinet of Ministers signed a memorandum stating that heat tariffs in Ukraine would not increase until the end of the heating season. The parties also agreed on the price of gas supply for budgetary institutions and the restructuring of UAH 30 billion of state debts to district heating companies and local budgets.

To recap, the Prime Minister assured that prices and tariffs for housing and communal services in the current heating season will remain unchanged.

As reported, the Ministry of Regional Development began the process of restructuring the debt of district heating companies.

Tags: The Cabinet of Ministers, Naftogaz, tariffs, Ukrgazvydobuvannya, debt, heating season, Gas market, price, agreement, gas supplies, коммунальные платежи, natural gas

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