Debt to OGTSU for imbalances in January is UAH 580 million

For the first month of 2020, the debt for imbalances to the Ukrainian GTS Operator amounted to UAH 580 million. This was reported by the press service.

The company reports that in January, market participants created significant imbalances in the system – they took 93.8 million cubic meters of natural gas from the hydraulic system, but did not compensate for them. This provoked the emergence of debt, 70% of which was accumulated by regional gas distribution companies of the RGK group.  

Negative imbalances

As of February 15, 2020, at the end of the balancing period, negative imbalances of market participants in January were accrued in the amount of 123.8 million cubic meters of gas for a total amount of UAH 770.3 million.

Of these, gas production companies account for 2.6 million cubic meters, the share of gas suppliers is 27.2 million cubic meters, and the main volume of negative imbalances (76%) falls on the operators of gas distribution networks – 94 million cubic meters of gas.

The volume of payments for negative imbalances to the GTS Operator in January amounted to only 3%. As of March 2, 2020, the debt of operators of gas distribution networks is UAH 579.6 million.

The largest debtor to the new GTS operator is the RGK group. In January 2020, the regional gas distribution companies of this group allowed unauthorized gas extraction of 65.7 million cubic meters on their networks with a total value of UAH 414 million.

Positive imbalances

During this period, the positive imbalances of market participants amounted to 278.3 million cubic meters of gas, or 1521.9 UAH million. In January, 99% of the positive imbalances were created by gas suppliers – 274.9 million cubic meters. Gas production companies account for 3.2 million cubic meters, while gas distribution operators account for only 0.2 million cubic meters.

The GTS operator has already fully settled with market participants for positive imbalances.

OGTSU also reports that due to the problems of unpaid gas extraction by regional gas distribution companies, there is a threat to the financial stability of the new independent GTS Operator. According to preliminary estimates of the company, the amount of such debt can reach UAH 10 billion by the end of 2020.

“All the profits from the new transit agreement with Gazprom will be spent on the purchase of gas to cover unpaid regional gas purchases, and the state will not be able to receive dividends from the operation of Operator of GTS of Ukraine LLC”, the statement said. 

Operator of the GTS of Ukraine calls on the NEURC to take the necessary measures to solve this problem.

Tags: The Cabinet of Ministers, Gazprom, gas, Naftogaz, contracts, tariffs, legislation, NEURC, The Minystry of Energy and Coal Mining, Top management, Ukrtransgaz, gas imports, energy market, UGSF, gas production, gas transit, GTS, RF, foreign affairs, heating season, unbundling, PSO, Gas market, monopoly, , stocks, agreement, gas supplies, power system balance, gas distribution station, Makohon, OGTSU, energy sector, gas extraction, gas sales company, RGK

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