On 29 December 2015, the National Energy and Utilities Regulatory Commission (NEURC, the regulator) approved new tariffs for natural gas transmission
On 29 December 2015, the National Energy and Utilities Regulatory Commission (NEURC, the regulator) approved new tariffs for natural gas transmission via the trans-border pipelines for entry and exit points in Ukraine. Following the adoption of the new Natural Gas Market Law in Ukraine in May 2015 and its becoming effective on 1 October 2015, transmission tariffs are regulated by the state and are set by the regulator. Thus Ukraine has changed its gas transmission pricing policy to harmonize its energy legislation with the EU.
Previously gas transmission tariffs were determined by negotiations between two commercial entities and were based on transported volumes and transmission distance. The new order replaces the negotiation procedure with regulated tariffs that should:
a) reflect gas transmission system operator’s costs authorized by the regulator,
b) apply to booked capacities (ship-or-pay),
c) be set for all entry and exit points of the national gas transmission system thus being unified for both transit and national transmission.
Naftogaz is currently analyzing the new rules adopted by NEURC.
The regulator’s decision will be binding on all market participants following its official publication. In the same time, Naftogaz, as a responsible and diligent partner, has invited Gazprom to hold negotiations related to the changes brought in by the harmonization of Ukraine’s legislation with the European energy regulations and the new regulatory framework that governs gas transmission business in Ukraine.
“We remain a reliable partner and confirm that the transmission of Russian gas to European consumers will remain uninterrupted in full volumes as stipulated by the contract. The adoption of the common European gas transmission regulations is a further step to integrating Ukraine’s gas transmission infrastructure with that of the EU. It will contribute to strengthening security of gas supply to the EU,” said Andriy Kobolyev, CEO of Naftogaz.