Ukraine is dismantling the remnants of the Soviet tariff formation system and moving towards an open market, the fairest tool for pricing services and tariffs. This was stated by Prime Minister Denys Shmyhal on January 25 during a meeting of the Conciliation Council in Parliament.
According to Denys Shmyhal, the full-fledged operation of all markets - electricity, gas market, utilities market - is a fundamental reform pursued by the Government.
The Prime Minister noted that the market price for gas is formed on global exchanges and then calculated on the Ukrainian power exchange.
"For example, in the summer after the introduction of the gas market, prices fluctuated less than UAH 3,000 per thousand cubic meters. And during September-October, it was possible to conclude an annual contract with Naftogaz at the price of UAH 4.70 per cubic meter. Tens of thousands of people have taken advantage of this opportunity and will pay the same price during the year," said the Prime Minister.
Meanwhile, the Head of Government noted that the market is currently seeing the process of formation and the monthly product appears not fair for certain categories of citizens. For that purpose, according to him, the Government has decided to limit the market price of gas in Ukraine at UAH 6.99 per cubic meter.
"This restriction will apply from February 1 and until it is needed this heating season. The price of gas will not exceed UAH 6.99 per cubic meter including VAT. "If companies cannot trade at that price, the obligation to supply gas at that price passes to the supplier of the last chance, Naftogaz, which is ready to provide natural gas for the households at that price," stressed Denys Shmyhal.
The Prime Minister also noted that the Government is currently into consultations with the National Energy and Utilities Regulatory Commission (NEURC), MPs and gas suppliers on the use of annual gas products by default by district providers, thereby allowing Ukrainians to easily forecast and calculate their costs.
According to Denys Shmyhal, the NEURC has approved a decision as well to reduce the gas distribution tariff for 14 regional gas supplying companies: "In general, there has been approved the tariff of UAH 1.79 per cubic meter, which is valid throughout Ukraine. Presently, it is a fair price, but anyway we will initiate changes to the law in order to allow regional gas providers to further reduce this tariff."
Apart from that, the Prime Minister noted that a memorandum is being prepared on tariffs for district heating and hot water supply. The Government is working on its development together with the line committee of the Verkhovna Rada, MPs, the Office of the President, and the Association of Ukrainian Cities.
According to Denys Shmyhal, the memorandum is to be signed shortly.