Shmyhal presented two approaches to reduce gas prices for the population

Prime Minister of Ukraine Denys Shmyhal said that during a meeting with the Ministry of Energy, NJSC Naftogaz, NEURC, GTSOU and representatives of the President's Office, two approaches were developed that would significantly reduce gas tariffs for the population. He wrote about this in his Telegram channel.

The first approach is the formation of gas tariffs according to the formula “the price at European hubs is“ minus ”the transportation of gas to Ukraine, which is proposed by the Ministry of Energy. Besides, it is suggested to limit the margin for gas suppliers temporarily. Expected result: significant reduction in tariffs and levelling of attempts by speculators to maintain excess profits in the formation of new European rules.

The second approach proposed by the state-owned company Naftogaz is to increase competition in the market by an obligatory publication by all gas supplying companies of their annual gas tariff, as Naftogaz is already doing. Besides, it is proposed that gas supply companies begin to actively compete for the consumer base, which will lead to lower tariffs through open bidding — expected result: increased competition and, as a result, a significant decrease in payments for Ukrainians.

Based on the results of a meeting with the responsible departments, a mechanism was formed that will reduce the price of gas transportation.

He also said that NEURC is urgently starting a thorough inspection of all regional gas companies, which currently have the highest tariffs for this service (gas transmission – ed.).

“Today in Ukraine, 3.1 million households receive subsidies for utility bills. The average amount of charges, for example, for November 2020, amounted to 1.6 thousand hryvnias. This is almost UAH 250 more than in 2019. In some regions, the average amount of subsidies per year increased by 300-500 UAH per month. This reduces the burden on the family budgets of the most vulnerable segments of the population. And this is a fair state policy, which will continue along with an increase in wages and a program to restore the economy,” the prime minister said.

Tags: The Cabinet of Ministers, gas, Naftogaz, tariffs, IMF, heating season, PSO, gas supplies, Shmyhal, population

Read also

Ukrainian gas TSO became a member of the European Business Association
Gazprom increased gas transit through Ukraine
More than 10 thousand customers have connected to Gas Supply Company Naftogaz of Ukraine in PUMB bank branches