NEURC may revoke CHERNIHIVGAZ SBUT’s license due to abuse in the gas market

Baturyn City Council appealed to the National Energy and Utilities Regulatory Commission (NEURC) due to the abuse of CHERNIHIVGAZ SBUT LLC, which supplies natural gas to household consumers of the united territorial community, the press service reports.

The appeal notes that CHERNIHIVGAZ SBUT LLC and the Baturyn City Council signed an agreement on the supply of natural gas for the needs of non-domestic consumers based on the results of the tender on December 29, 2020. The total price of a cubic meter of natural gas for the period amounted to 4.91 UAH including VAT from 01.01.2021 to 31.12.2021.

“In January 2021, Baturyn City Council received three additional agreements from CHERNIHIVGAZ SBUT at once, notifying an increase of the gas price from 01.01.2021 by more than 33% (each by 9.99% compared to the previous price). Besides, on February 5, 2021, the gas supplier sent another supplementary agreement, increasing the price of one cubic meter of gas for the fourth time since the beginning of the year to UAH 7.18610, including VAT, ” the message says.

Also, CHERNIHIVGAZ SBUT LLC warned Baturyn City Council that in case of refusal to sign additional agreements, the contract of December 29, 2020, would be terminated. In this case, non-household consumers of Baturyn united territorial community – schools, kindergartens, hospitals, art schools during the heating season may be left without heating, while new tender procedures will occur.

This means that by the end of this year, the funds allocated in the budget of the city council will not be enough – it will be necessary to redistribute funds and re-conduct the tender procedure.

On Friday, February 26 this year, NEURCU will consider the issue of checking CHERNIHIVGAZ SBUT LLC. The Commission will also appeal to the Antimonopoly Committee of Ukraine to investigate a possible violation by CHERNIHIVGAZ SBUT LLC of legislation on the protection of economic competition.

According to the current legislation, in case of violations of license conditions or abuses by the supplier, a fine of UAH 85 to 850 thousand may be charged or the license may be revoked.

On February 12, NEURC cancelled a license due to abuse in the natural gas market for the first time.

Tags: gas, tariffs, legislation, NEURC, AMCU, heating season, Gas market, gas sales company, consumers

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