Gas companies strike back by declaring the threat of the industry collapse

The Association of the Gas Market of Ukraine and nearly fifty gas distribution and gas supply companies appealed to the President of Ukraine, the Prime Minister of Ukraine and the Chairman of the NCSREU with an open letter on the possible collapse of payments for consumed natural gas and its transportation and distribution services, which jeopardizes the whole industry. 

As stated in the open letter, currently, a stalemate has emerged in Ukraine, as the whole legal framework, that provides for payments for natural gas and its transportation and distribution services, has been repealed. 

The market participants explain that such circumstances have arisen due to the fact that on April 10, the National Commission for State Regulation in the Energy and Utilities cancelled its decision on the establishment of tariffs for gas delivery and network servicing, which were calculated as a capacity fee. Those actions of the state regulator were caused by an unprecedented political pressure, despite the fact that the tariffs were adopted in accordance with the Law of Ukraine "On the natural gas market" and in line with Ukraine’s obligations to the IMF that are set out in the memorandum of 22.03.2017 and signed by the President and the Prime Minister of Ukraine.

Therefore, in the absence of new rules on payments on the market, the industry enterprises are left without funding. As a result, it stalls the works on operation and maintenance of the gas distribution system, jeopardizing the salaries of thousands of workers and leads to forced suspension of gas supply to consumers in Ukraine.

The appeal was signed by the chairmen of Vinnytsiahaz, Volynhaz, Hadyachhaz, Dniprohaz, Dnipropetrovskhaz, Zhytomyrhaz, Zakarpathaz, Zaporizhhaz, Ivano-Frankivskhaz, Kyivoblhaz, Kryvorizhhaz, Kremenchukhaz, Lubnyhaz, Lvivhaz, Mykolayivhaz, Odesahaz, Poltavahaz, Rivnehaz, Sumyhaz, Tysmenytsyahaz, Kharkivhaz , Kharkivmiskhaz, Khersonhaz, Khmelnitskhaz, Chernivtsihaz, Chernihivhaz and directors of the suppliers Vinnitsahaz Zbut, Volynhaz Zbut, Dnipropetrovskhaz Zbut, Zhytomyrhaz Zbut, Zakarpathaz Zbut, Zaporizhhaz Zbut, Ivano-Frankivskhaz Zbut, Kyivoblhaz Zbut, Kremenchukhaz Zbut, TD Lubnyhaz, Lvivhaz Zbut, Mykolayivhaz Zbut, Poltavahaz Zbut, Odesahaz Zbut, Rivnehaz Zbut, Sumyhaz Zbut, Kharkivhaz Zbut, Khersonrehionhaz, Khmelnitskhaz Zbut, Chernihivhaz Zbut, Chernivtsihaz Zbut.