The regulator increased responsibility for imbalances in the gas market

The National Energy and Utilities Regulatory Commission (NEURC) approved amendments to the Codes of Gas Transmission and Gas Distribution Systems, providing for a decrease in the size of the permissible deviation for customers of gas transmission services and an increase in the amount of adjustment, Interfax reports.

According to the draft resolution, the size of the permissible deviation for customers of transmission services (tolerance) has been reduced from 10% to 3%, and for customers of transmission services that are operators of GDS – from 15% to 7.5%.

At the same time, the commission applied a differentiated approach to determining the amount of adjustment, depending on the size of the deviations.

A 10% adjustment amount is applied for imbalances from 3% to 5% and for customers-operators of GDS – from 7.5% to 15%. An adjustment amount of 20% is applied for imbalances above 5% and 15% (for GDS operators).

At the meeting of the commission, head of GTS Operator of Ukraine LLC, Serhii Makohon, expressed support for the decision under consideration, explaining this, in particular, by the need to create incentives for customers of transmission services to more efficient forecasting and work in the market.

“Due to the fact that the price and the level of tolerance are quite loyal, traders do not import, do not buy gas on the market, do not buy from producers, but take it from the GTS operator, artificially creating imbalances. In May-July, traders, not even operators of gas distribution system, took away 1 billion cubic meters from OGTSU," explained Makohon.

According to him, if this decision is not made, OGTSU will face big technological problems.

“In July OGTSU purchased 450 million cubic meters and 508 million cubic meters was taken away.  More than it bought. We are offtaking strategic reserves,” the head of OGTSU noted.

Tags: The Cabinet of Ministers, gas, Naftogaz, tariffs, court, legislation, NEURC, gas imports, energy market, GTS, gas exports, debt, Gas market, negotiations, GTS Operator, price, agreement, volumes, The National Energy and Utilities the Natuonal Regulatory Commission, power system balance, gas distribution station, Makohon, OGTSU, infrastructure, energy sector, natural gas, gas imbalances, DNO, population, energy security, The Ministry of Energy, economy, market, gas transmission system, supplier, consumers

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