Energy Club calls the government to liberalize the gas market and view PSO model before the heating season

Gas / photo ua.depositphotos.comEnergy Club, a leading business association of energy companies of Ukraine, appealed to Prime Minister Denis Shmigal with a list of priority proposals for stabilization of the gas market and preparation for the heating season of 2025-2026. This is stated in the letter of Energy Club to the head of the government.

The appeal refers to a serious threat of natural gas deficiency – according to experts, a lack of resource for the winter can be 4-5 billion cubic meters. This is due to a decrease in the volume of internal production by 25-40% due to damage to infrastructure during Russian attacks, as well as with limited technical capabilities for import.

Additional challenges are increasing competition for the resource in the European market, insufficient capacity of import routes, as well as unprofitable tariffs in certain areas.

Energy Club also focused on market distortions through the current PSO model, which obliges Naftogaz of Ukraine to supply gas to certain consumer categories at fixed prices. According to experts, it hinders competition and restrains the development of internal production. In a letter to the Energy Club Government, it proposes to review the PSO approach, to introduce gradual liberalization of pricing for commercial consumers, as well as to create levels of rules for all market participants, in particular through the introduction of futures and long -term contracts.

The organization urges to intensify cooperation with European partners to expand the physical capabilities of imports, to overcome tariff barriers, to participate in joint purchases and to attract European traders to store gas in Ukrainian PSGs. Energy Club also considers it appropriate to intensify negotiations with international financial institutions on raising money for import gas.