January 1, 2025
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The European Business Association warns of the negative consequences of increasing tariffs for gas transportation

The 356% and 305% increase in gas transportation tariffs will have serious consequences for the industry, the EBA warns.”, — write: www.unian.ua

The 356% and 305% increase in gas transportation tariffs will have serious consequences for the industry, the EBA warns.

Photo by ua.depositphotos.comPhoto by ua.depositphotos.comThe European Business Association (EBA) has expressed serious concern about the draft resolution of the NECRC on setting new tariffs for natural gas transportation services for 2025-2029. According to the Association’s experts, the document foresees an unprecedented increase in tariffs: by 356% for entry points and by 305% for exit points.

Representatives of the business community emphasize the lack of transparency in the process of setting tariffs.

“Discussions of draft decisions of the NECRC regarding tariffs are not carried out, although the calculated data for the tariffs of the Operator of GTSU are not included in the categories of information with limited access,” EBA experts note.

In case of termination of gas transit from 2025, according to the Association, the number of active compressor stations may decrease from 73 to 20-25. In this regard, the EBA proposes to exclude unused stations from the tariffs and to conduct an inventory of the assets of the Operator of the GTSU.

Experts also draw attention to the possibility of reducing the costs of OGTSU due to participation in exchange trading, where Ukrainian gas is 20% cheaper than imported gas.

“When calculating tariffs, it is expedient to take into account the forecast of the price of natural gas on the Ukrainian gas market,” the Association emphasizes.

The EBA warns of the negative impact of tariff increases on the industry.

“The increase in the financial burden on gas production companies will lead to a decrease in investments in the development of new fields and wells, which will reduce the volume of gas production and potentially increase dependence on imports,” experts warn.

In this regard, the European Business Association calls on the NCRECP to leave the tariffs at the current level and ensure the transparency of the process of their establishment. The association also suggests involving business representatives in the development of a methodology for determining the level of tariffs, taking into account the volumes of transit and gas production.

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