NEURC increased tariffs for the GTS Operator for gas transportation
Tariffs for 2025-2029 apply to companies that use the gas transportation system. The cost of gas and its distribution for household consumers will remain unchanged
The National Commission for Energy and Utilities Regulation (NCERC) at its meeting on December 30, 2024 adopted new tariffs for natural gas transportation services for LLC "GTS Operator of Ukraine" (OGTSU). They are calculated for entry and exit points into/from the gas transportation system(s) for the regulatory period 2025-2029.
According to the annexes to the relevant resolution of the National Commission for the Regulation of the National Energy and Power Sector of Ukraine, the tariff for entry points for the next five years will be 464.37 UAH (excluding VAT) per 1 thousand cubic meters, and for exit points – 501.97 UAH (excluding VAT) per 1 thousand cubic meters.
Thus, the tariff increase is more than 4 times compared to the previous five-year regulatory period. The reason for such a sharp increase in the tariff is the cessation of Russian gas transit from January 1, 2025 and, accordingly, the loss of income for the GTS Operator.
"In 2024, 85% of revenue will be from the transportation of gas originating from the Russian Federation. That is, 15% is what remains for us from domestic customers. The tariff increase is not enough for full compensation, but we agree, we understand that the Ukrainian economy needs balanced decisions," said Dmytro Lippa, General Director of the Ukrainian Gas Transmission System Operator (OGTSU), at a meeting of the National Commission for the Control and Regulation of Energy and Utilities of Ukraine.
According to him, the company he heads has taken all possible measures to reduce costs. In particular, compressor stations are being closed and preserved, expenses are being optimized, and some personnel are being laid off.
At the same time, the National Energy and Power Regulatory Commission emphasizes that its decision to increase the tariff for the gas transportation services of the Ukrainian Gas Transmission System Operator will not affect household consumers. The changes are aimed solely at ensuring the stability of the operation of the Ukrainian gas transportation system in the new conditions after the termination of the transit of Russian gas through the Ukrainian GTS.
The current gas tariff for the population remains unchanged, as does the cost of gas distribution, the Regulator assures.
"Tariffs for gas and heat for household consumers in the event of the adoption of the tariff of the Gas Transmission System Operator of Ukraine will not change, they are fixed for the entire heating season," said Yuriy Vlasenko, Chairman of the National Energy and Utilities Commission, during the meeting.
The moratorium on increasing tariffs for the population for gas and heating, which has been in effect since 2022, remains in effect. Accordingly, the cost of hot water and heating will not change, the press service of the National Commission for the Energy and Utilities of Ukraine (NKREKP) said in a statement.
As reported by "Ukrainian Energy", at 7:00 on January 1, 2025, in the interests of national security, the transportation of Russian natural gas to Europe through the territory of Ukraine was stopped. We remind you that the five-year agreement between NJSC "Naftogaz of Ukraine" and Russian PJSC "Gazprom" on the transit of Russian gas expired on December 31, 2024.
