Naftogaz, Ukraine’s national oil and gas company, has launched a new product which enables Ukrainian households to prepay up to 25 thousand cubic meters (tcm) of natural gas per customer at the current summer price and use the prepaid gas volumes during the heating season. The offer is available until 25 September, at UAH 4874.42/tcm, excluding VAT, transmission and distribution costs.
Such a product is offered for the first time in history of Ukraine’s retail gas market and may pave the way for its full liberalization.
“Since 2014, Ukraine’s gas market is integrated with that of the EU. Driven by the decrease of the European hub prices, gas prices in Ukraine have decreased by 25% over the past five months. A number of our commercial customers have prepaid their volumes taking advantage of the current price levels. Now, we offer this opportunity to households as well,” commented Naftogaz CEO Andriy Kobolyev.
The new product enables households to enjoy advantages of a gas market, which so far have been available only to commercial clients. Retail consumers now have the opportunity to fix their gas costs and be indifferent to possible price increases. The offer is market based and is commercially attractive for both Naftogaz and consumers.
Currently, Naftogaz offers this product through the existing chain of incumbent retail companies to make it available to as many users as possible. With further liberalization of the nation’s retail gas market, Naftogaz and any other supplier will be able to offer innovative products directly to over 12 million Ukrainian retail gas consumers.
NJSC Naftogaz of Ukraine