NEURC canceled the gas distribution license of Donetskoblgaz

 

The National Energy and Utilities Regulatory has cancelled the gas distribution license of Donetskoblgaz PJSC for violation of the law and abuse in the supply of natural gas.

“The actions of Donetskoblgaz are not just a repeated violation of licensing conditions, it is sabotage against consumers, against the country. Indeed, last month, the enterprise disconnected the district heating company from gas supply... The state does not need a licensee who accumulates debts to the operator of the gas transmission system and disconnects district heating company,” said Tarasiuk, Chairman of NEURC, during the consideration of this issue at a meeting of the Commission on April 14, 2021.

Also, NEURCU, upon the request of GTSOU, carried out an audit for the compliance of PJSC Donetskoblgaz with the requirements of the legislation regarding the implementation of economic activities for the distribution of natural gas.

According to the results, it was established that the Licensee twice during 2020 did not fulfil the terms of the relevant contract for the transportation of natural gas concluded with LLC Operator of the Gas Transportation System of Ukraine in terms of paying the cost of daily imbalances for the gas months of October, November and December 2020. This led to the fact that the debt of Donetskoblgaz PJSC as of March 16, 2021, for the settlement of daily imbalances for the indicated gas months of the last year amounted to UAH 353.9 million (including VAT) or 87.12% of their total value.

Therefore, the Commission decided to cancel the license for the right to carry out economic activities for the distribution of natural gas, oil gas and gas (methane) of coal deposits, issued by Donetskoblgaz PJSC.

“After consulting with the government authorities involved, we decided that the license of Donetskoblgaz will be cancelled from August 1, 2021. The overwhelming majority of enterprise networks are state property. Therefore, we turn to the Ministry of Energy, the State Property Fund, NJSC Naftogaz of Ukraine as the owner of 38% of the shares of Donetskoblgaz to determine which company these networks will be transferred to. Until August 1, 2021, NEURC must issue a license to a new enterprise, which will start from scratch,” Tarasiuk said.

As reported, almost 50% of the shares of Donetskoblgaz were arrested.

Tags: Naftogaz, legislation, NEURC, debt, облгаз, GTS Operator, gas supplies, The Ministry of Energy, consumers

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