NEURC reacted to regional gas plans to increase distribution tariff

National Energy and Utilities Regulatory Commission (NEURC) stressed that there were still no decisions on approving tariffs for the distribution of natural gas (delivery) for regional gas companies for the next year, the press service reports.

NEURC noted that the intentions of individual regional gas companies to significantly increase tariffs for the distribution of natural gas does not mean that they can be implemented.

This is how the regulator reacted to the draft tariffs published on the websites of the GDS operators. They stressed that the information released by some media that the tariff increase has already taken place is not true.

According to the current legislation, tariffs for natural gas distribution services for the next year are approved by NEURC annually, as a rule, in December of the previous year. No decisions were made to approve such tariffs for the next year.

“The intentions of individual operators of gas distribution networks to increase the tariffs for the distribution of natural gas extremely significantly does not mean that such intentions can be realized. In the draft calculations published by the operators of gas distribution networks on their official websites in October this year, it is proposed to increase tariffs for the distribution of natural gas for 2022 from 61% (JSC Kirovohradgaz) to 443% (JSC Luhanskgaz). Operators explain such settlement projects mainly by a sharp rise in the market price for natural gas,” the statement says.

However, the Regulator stressed that it would approve exclusively economically justified tariffs that meet the interests of all participants in the natural gas market, and most importantly, the interests of consumers.

“The validity of all draft calculations submitted to NEURC will be thoroughly checked. The experience of the past years shows that the tariffs for the distribution of natural gas are approved at a rate significantly lower than those previously calculated by the operators of gas distribution networks. There is no reason to doubt that this will be the case this year too,” NEURC said in a statement.

Tags: tariffs, legislation, NEURC, debt, heating season, Gas market, облгаз, Ukraine, gas supplies, natural gas, population, consumers

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