Cabinet fixates gas price for heat producers

This was announced by Prime Minister of Ukraine Denys Shmyhal during a government meeting on June 3, according to Ukrinform.

"In the context of preparations for the heating season, the government has decided that CHPPs, household management companies, and other heat producers will receive gas at a fixed price of UAH 7,400 per 1,000 cubic meters. This allows local authorities not to raise household tariffs," said the prime minister.

According to the head of government, now in all regions, damage inflicted to the utility companies is being recorded and documented. To date, 35,000 damaged or destroyed sites have been registered in four regions. Almost 75% of these are located in Kyiv region.

Almost 200 boiler houses have been destroyed, of which 37 are already undergoing repairs.

"It is difficult to make an assessment in Kharkiv, Mykolaiv, Donetsk, and Luhansk regions now as active hostilities and shelling don’t stop there," Shmyhal said.

The price of UAH 7,400 per 1,000 cubic meters for heat generation companies that signed three-year contracts with Naftogaz was in effect in 2021. Under the terms of the deal, the price of gas was to change this year.

As Ukrinform reported earlier, on April 29, the Cabinet extended special duties on the gas market, applied to Naftogaz of Ukraine and affiliated companies, for the period from May 1 to September 30 this year.

At the same time, Naftogaz has fixated the gas price throughout the heating season for its consumers - individuals (UAH 7.96 per cubic meter – before transmission) and budget organizations (UAH 13.7 per cubic meter – before VAT and transmission).

Currently, the government is proposing to allocate UAH 264.3 billion from the state budget to resolve the situation on the natural gas market and in the heat supply sector. The relevant bill was filed in the Verkhovna Rada. In particular, UAH 38.2 billion is set to be allocated to local budgets to reimburse the difference in tariffs for heat energy and hot water supply services.

Photo: Cabinet of Ministers of Ukraine