The introduction of PSOs has limited consumers who receive subsidies in the free gas market. And the abolition of these prices will lead to an increase in the number of grantees.
This opinion was expressed by energy expert Maryia Yakovleva for Kosatka.Media.
Now the population buys gas only from Naftogaz, which has to ensure PSOs.
“The entire regulatory framework for subsidies is written out for a monopolist, and no one else can work with subsidies. Therefore, there will be no market opening in a normal understanding of this concept”, the expert noted.
She explained: after the launch of the gas market, the state temporarily imposed PSOs to sell gas to household consumers at a special price, because ordinary people could not pay market prices.
“And during this time it needed to do homework, namely: to carry out large-scale programs for energy conservation and energy modernization so that people would cease to be hostages at home, to carry out reforms. For five years, the authorities raised prices and introduced PSOs. Homework has not yet begun. If you remove PSOs today, this will lead to an increase in gas prices for the needs of the population, an increase in the number of subsidies, an increase in government spending on subsidies, and an increase in borrowing for “eating up”, Yakovleva said.
The expert clarified that PSO market is 15 billion cubic meters per year, which is 50% of the total natural gas market in Ukraine. In her opinion, the segment of domestic consumers in the natural gas market is considered the most attractive.