“Zakarpatgaz” PJSC is counting losses

The losses of the "Zakarpatgaz" PJSC from natural gas distribution activities in the first half of this year amounted to UAH 48.9 million. The negative result is due to the fact that the current tariff does not cover reasonable expenses of the enterprise, the press service of the "Zakarpatgaz" PJSC informs. Over the last two years, the activity for delivering (distributing) natural gas to consumers in Transcarpathian region has remained unprofitable. In addition to the imbalance of the tariff, there is also the problem of the difference in the price of gas for industrial needs.

The tariff for the distribution for the "Zakarpatgaz" PJSC, stipulates that the company will purchase gas for industrial and technological needs at 5703.7 UAH for 1 thousand cubic meters. At the same time, the actual price of natural gas in the current year is 12569 UAH for 1 thousand cubic meters. The current tariff for distribution provides for almost UAH 240.7 million for the purchase of natural gas for industrial and technological needs. And its purchase price in the market is UAH 444.7 million. Given that the cost of gas purchase accounts for 70% of the total tariff revenues, this difference greatly affects the loss-making activity of the company.

"The components of the current tariff are formed disproportionately – in order to keep gas pipelines in good condition, it is necessary to spend considerably more money than that approved by the regulator at the end of 2016. In addition, every year, the amount of gas transported decreases. For example, in 2017, the company actually transported 462 million cubic meters of gas, while the tariff was calculated based on 486 million cubic meters. During this period, the gas distribution company lost UAH 20.9 million in profit on account of the decrease in the volume of gas transportation", – Natalia Dorokhina, CFO of the "Zakarpatgaz" PJSC commented.

 Due to the unreasonable gas distribution tariff, in 2017, the "Zakarpatgaz" PJSC lost UAH 11.7 million. The amount of loss in the first half of this year is almost UAH 49 million.