Metallurgists categorically opposed the increase in the tariff for gas transportation: it will lead to the loss of the industry

Metallurgists categorically opposed the increase in the tariff for gas transportation: it will lead to the loss of the industry / photo UNIANThe 305% increase in the tariff for natural gas transportation, which was approved by the National Energy Regulatory Commission (NKREKP), will lead to losses in metallurgy, production cuts and mass layoffs. This is stated in the letter of the Federation of Metallurgists of Ukraine to Yuriy Vlasenko, the head of the NCRECP.

The Federation reminded that the industry is currently facing significant logistical constraints and a general decrease in global demand and prices for metallurgical products, and exports of metallurgical products have decreased by almost 70%. Currently, steel production in Ukraine is less than 30%, and iron ore production is less than 50% of the pre-war level.

“The FSU is categorically against increasing the tariff for natural gas transportation. In connection with a full-scale war, any further increase in the tariff for natural gas transportation will lead to a drop in production volumes, a massive reduction of employees and the danger of losing a strategically important industry,” – emphasized FSU

The Federation also drew the regulator’s attention to the deficiencies in the justification of the tariff increase project proposed by NKRECP: in particular, there are no detailed calculations that would confirm the necessity and economic validity of the increase in the tariff for natural gas transportation.

“In order to ensure the transparency and openness of the process, it is necessary to publish detailed calculations with a breakdown of the costs of the Operator of the GTS of Ukraine, similar to the structure of tariffs for the transmission of electric energy. The absence of such data complicates a comprehensive discussion and prevents taking into account the opinions of interested parties. Therefore, to ensure a fair and balanced decision , it is necessary to conduct open consultations with representatives of industry, industry specialists and the public,” the FSU emphasized.

The Federation also emphasized that there are a number of steps that will help maintain the current tariff — in particular, optimization of costs for the purchase of natural gas for industrial needs. It is also necessary to carry out a detailed audit of the operating costs of the Operator of the GTS of Ukraine: this will allow to identify infrastructure objects with low efficiency or those that do not generate profit, and to develop a plan for their gradual decommissioning.

“The rate of income of the Operator of the GTS of Ukraine, which is 18.05%, is unacceptably high in the conditions of martial law. This value should be reduced to a level that corresponds to the realities of today and ensures a fair balance between the needs of the operator and the interests of consumers. It is necessary to consider the possibility of temporarily reducing the rate income and maintaining the tariff for natural gas transportation at the current level of UAH 124.16/thousand m3, to support the country’s economic stability,” summarized FSU