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Economy 2020-07-04T04:03:33+03:00
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Reduction Of Heating Tariffs Possible If Gas Price Remains At UAH 4,000 Per 1,000 Cubic Meters – Regional Deve

Reduction Of Heating Tariffs Possible If Gas Price Remains At UAH 4,000 Per 1,000 Cubic Meters – Regional Development Ministry

heating, gas, natural gas, heating season, gas price, heating tariff

It will be possible to lower heating tariffs in the 2020/2021 heating season if the price of natural gas remains at the same level as the last heating season’s average price of UAH 4,048.5 per 1,000 cubic meters.

The Ministry of Development of Communities and Territories announced this in a statement, Ukrainian News Agency reports.

According to the statement, reduction of utility tariffs can be considered only based on the value of their main components, namely the cost of natural gas (accounts for about 80% of heating tariffs) and the cost of electricity (30% of water supply and sewage disposal tariffs).

“If the price of natural gas in the 2020/2021 heating season is at the level of the average price that was in effect in the previous period (UAH 4,048.5 per 1,000 cubic meters), it will be possible to reduce the tariffs for thermal energy and services involving supply of thermal energy and hot water," the statement said.

According to the ministry, the price of natural gas for heat supply enterprises ranged from UAH 2,897 per 1,000 cubic meters (in April 2020) to UAH 4,899 per 1,000 cubic meters (in November 2019) in the last heating season.

As Ukrainian News Agency earlier reported, the draft memorandum between Ukraine and the International Monetary Fund provides for non-extension of the public service obligations to sell natural gas, including gas sales to households, and annual review of heating tariffs before the start of the heating season.

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