The Naftogaz of Ukraine national joint-stock company declares that the increase by the Naftogaz Trading natural gas supply company LLC gas prices for thermal utilities more than 3 times will not affect the bills of Ukrainians.
The Naftogaz of Ukraine has said this in a statement, Ukrainian News Agency reports.
"The Naftogaz Trading natural gas supply company LLC in pursuance of the terms of three-year contracts with enterprises of thermal utilities really set new prices for natural gas. The price revision planned from June 1, 2022 was one of the terms of the agreement that thermal utilities voluntarily concluded last year with Naftogaz. And the terms of the three-year contracts were agreed upon by the government," the statement said.
At the same time, the statement notes that this revision of prices for thermal utilities will not affect the bills of Ukrainians.
"The bill adopted by the government provides that part of the international financial assistance for Ukraine will be used to contain tariffs. These funds will compensate for the difference between economically justified and current tariffs, in particular for thermal utilities. This mechanism will also allow thermal utilities to settle at new gas prices with Naftogaz and pay off the overdue debt," the statement said.
As Ukrainian News Agency earlier reported, the Cabinet of Ministers is initiating a moratorium on raising tariffs for utilities for the period of martial law and within 6 months after its completion.
Within the framework of three-year agreements, the Naftogaz Trading natural gas supply company LLC plans to increase natural gas prices for thermal utilities more than 3 times to UAH 29,392 per 1,000 cubic meters (including VAT, taking into account the tariff for transportation services and the coefficient that is used when ordering capacity for the day ahead).
Previously, Naftogaz Trading called on thermal utilities to conclude contracts with it for the supply of natural gas for three years.
At the same time, the price for the first year was UAH 7.42 per cubic meter (from June 1, 2021 to May 31, 2022, including VAT, excluding the tariff of the operator of the gas transmission system).
For the second and third year of natural gas supply, the fixed price will be determined in May 2022 and May 2023, and the price change will occur in accordance with the indexation of the change in quotations at the European NCG hub and the exchange rate.
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