Gas producing companies demand a dialogue with the NCRECP regarding tariffs for gas transportation

Photo by UNIANThe Association of Gas Production Companies of Ukraine appealed to the NCRECP with a request to organize a meeting to discuss new gas transportation tariffs for 2025-2029. The draft resolution, approved by the National Commission on November 13, 2024, provides for a significant increase in tariffs for gas entry and exit points in Ukraine.

In a letter to the Regulator, the Association emphasized the importance of the stable operation of the gas transportation system and talked about the consequences of rising costs.

“… Any increase in costs for producers will automatically lead to an increase in the cost of natural gas for the final consumer,” the gas producers said.

The association also drew attention to the lack of necessary information in the justification of the project, which makes it difficult to understand the key parameters of the new tariffs. In this context, they mentioned EU Regulation 2017/460 of March 16, 2017, which obliges operators of gas transportation networks to publish information about tariffs – this allows market participants to understand how gas transportation prices are determined.

“In the rationale for the Draft Resolution, there is actually no information/indicators in accordance with Article 30 of the Regulation. In turn, this does not allow the customers of transportation services, even at a superficial level, to familiarize themselves with the information and indicators that were used to calculate the tariffs in the Draft Resolution” , – the Association emphasizes.

Also, the Association notes that NKRECP does not plan to conduct open discussions of this project, referring to the resolutions that regulate the issue of tariffs during martial law and the protection of information about critical infrastructure.

The association calls on the NCRECP to take into account its comments and organize a confidential meeting with the participation of key players of the gas market to discuss the main indicators of the gas transportation system that affect tariffs.

“The Association appeals to the NCRECP with a request to organize a non-public, confidential meeting with the participation of key subjects of the natural gas market, such as Naftogaz of Ukraine JSC, Ukrgazvydobuvannya JSC, the GTS Operator and the Association,” the organization notes.

It will be recalled that Oleksiy Kucherenko, People’s Deputy and Chairman of the Verkhovna Rada’s Temporary Investigative Commission for Investigating the Formation of Prices and Tariffs for Energy Resources and Communal Services, also demands to disclose the details of the formation of new tariffs for the “Ukraine GTS Operator”. He sent the relevant parliamentary request to the head of the National Committee of the National People’s Congress of Ukraine.