The Government will no longer regulate gas prices for district heating companies and will not oblige Naftogaz Ukrainy to sell natural gas for them at a fixed price. This was stated by Prime Minister Denys Shmyhal during a meeting of the Cabinet of Ministers of Ukraine on May 19.
"This is another extremely important step towards creating a full-fledged gas market. This is a step that will finally allow local authorities to take responsibility for people's tariffs for heat and hot water," the Prime Minister stressed.
The Head of Government noted that according to the explanations of the National Energy and Utilities Regulatory Commission (NEURC), a change of supplier is possible even if there is a debt for gas.
"The inefficiency of utility companies management will no longer be covered by a fixed gas price. Now all district heating companies, most of which belong to local authorities, will enter into contracts with gas supply companies independently," said Denys Shmyhal.
The Prime Minister commissioned the Minister for Communities and Territories Development Oleksii Chernyshov and the Minister of Energy Herman Halushchenko to fulfill all the provisions of the Memorandum between the Government, city heads of Ukraine, NEURC and Naftogaz of Ukraine signed on February 9, 2021, within three weeks.
Thus, ministries must submit proposals for a bill on debt repayment for the difference in tariffs to the district heating company.