Tariffs for gas transportation in Ukraine will increase two to four times - decision of the National Energy Regulatory Commission
07 Jan 2025

Tariffs for gas transportation in Ukraine will increase two to four times - decision of the National Energy Regulatory Commission

In Ukraine, from January 1, 2025, the tariff for gas transportation for domestic consumers will increase two to four times due to the cessation of Russian gas transit. The decision was made by the National Energy Regulatory Commission (NERC) at a meeting on December 30. The increase in tariffs will affect the work of industry and will not apply directly to household consumers, since they are under the special PSO regime (imposition of special obligations).

Details

The National Energy Regulatory Commission has adopted a resolution “On establishing tariffs for LLC “GTS Operator of Ukraine” for natural gas transportation services for entry points and exit points for the regulatory period 2025-2029”. The resolution comes into force on January 1, 2025, writes the specialized publication ExPro.
According to the document, it is planned to double the tariff for entry/exit to the Ukrainian GTS for international points: from €4.1 per 1,000 cubic meters to €10.29 per 1,000 cubic meters for most entry points to the Ukrainian GTS; from €7.6-8.6 per 1,000 cubic meters to €14.58-15.74 per 1,000 cubic meters for most exit points from the Ukrainian GTS.
The tariffs do not include the connection points on the border with the Russian Federation (Sudzha and Sokhranivka), since there is no information on the booked volumes for them. The tariffs take into account the scenario of no transit of Russian gas from the beginning of 2025.
Tariffs for entry/exit from the GTS for domestic points will increase more than fourfold: from UAH 101.9 per 1,000 cubic meters to UAH 464.4 per 1,000 cubic meters for domestic points of entry into the GTS; from UAH 124.16 per 1,000 cubic meters to UAH 501.97 per 1,000 cubic meters for domestic points of exit from the GTS.
The coefficients for ordering capacity for certain periods for both domestic and international points were left unchanged.
85% of the company's revenue in 2024 came from the transportation of Russian gas, and only 15% from domestic consumers, explained the decision by Dmytro Lippa, CEO of the GTS Operator of Ukraine. He admitted that the tariff increase is not enough to fully compensate for losses, but the decision was made taking into account the need for balanced economic steps for Ukraine.
According to Lippa, the GTS Operator of Ukraine has taken measures to reduce costs: staff and expenses are being reduced, compressor stations are being closed and preserved.
Commenting on the decision to increase the tariff, the head of the Federation of Metallurgists Serhiy Bilenkyi announced an increase in annual costs for the industry by UAH 300 million. “We are not able to withstand such a significant load,” he stressed.

Source: https://forbes.ua

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