Current GDN losses – UAH 17 billion – representative of the gas business

The gas industry is facing a very difficult situation now. There is a debt for the gas supply service. Also, the problems of old debts have not been resolved.

Alla Yarova, head of Chernihivgaz said this during an online meeting “Uninterrupted strategic services in the face of a critical drop in payments” organized by Energy Club.

She recalled that since the beginning of the year, the procedure for charging gas supply has changed, which caused a lot of discussion.

“And against the backdrop of the promises of the populists to cancel this payment, there is a reduction in payments for the supply of natural gas today. And this trend is getting worse, because many families have lost income. On average, consumers in Ukraine have arrears within 1.5 months, despite the fact that delivery was introduced on January 1, only 3 months have passed,” Yarova clarified.

In order to prevent complications due to non-payments for gas delivery, the companies propose to change the procedure for transferring benefits and subsidies for the quarantine period and transfer them not to the population, but to utility providers, including gas distribution operators.

“This is very important for the Chernihiv region, because about 70-80% of recipients of utilities are recipients of benefits and subsidies. This will enable utility providers to use money not only targeted, but also for the purpose. And this will stop the trend towards a deepening non-payment crisis,” she said.

There are also unresolved problems between DNO, Naftogaz and Ukrtransgaz, which were formed due to the state tariff policy, illegal actions of the wholesale supplier and the manipulations of thermal engineers, Yarova noted. According to her, these are very complex litigations that take time from all participants that have been going on for years, and which still require a final decision.

“Today, the losses of gas distribution systems in our state amount to about 17 billion, this is only part of the losses due to inconsistency of the tariff policy. We have positive experience in restructuring the debts of the enterprises of Gas of Ukraine. We understand that the state must compensate for these losses, but there is no source of compensation. Therefore, we propose to consider debt restructuring for 10 years, or simply write them off,” she said.

According to Yarova, this would provide a settlement of issues with the wholesale supplier, as well as with the end consumer, would make it possible to further develop the natural gas market.

Tags: The Cabinet of Ministers, gas, Naftogaz, contracts, tariffs, legislation, The Minystry of Energy and Coal Mining, Top management, Ukrtransgaz, energy market, gas production, gas transit, GTS, debt, PSO, Gas market, облгаз, law, gas distribution station, natural gas, gas imbalances, gas supply, DNO, population

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