Vienna - Group DF, which unites the assets of Ukrainian businessman Dmytro Firtash, plans to consolidate about 70 percent of the gas distribution market in Ukraine, and it is preparing the corresponding documents to receive a permit from the Antimonopoly Committee of Ukraine, Group DF Managing Director Borys Krasniansky has said.
“It sounds aggressive, from the point of view of monopoly laws. (But) we’re not giving up on the interests of end consumers,” Krasniansky said at a conference entitled “Inside Ukraine: Exploring its Future Role in European Energy Security” in Vienna, Austria, on March 19. The event was organized by the Economist magazine, with the support of the Foundation for Effective Governance.
Krasniansky said that each of 44 regional gas supply companies is a natural monopoly in its sphere.
“Anyway, everything is regulated by the state,” he said, noting that the tariffs for all the regions and categories of consumers are regulated.
He said that the consolidation gives confidence in the quality of the service provided and reduces risks for consumers. He said that the large scale would allow the attraction of investment, introducing a proper operations model and attracting international experts.
Krasniansky noted that the average age of Ukrainian gas pipelines exceeds 50 years, and technological losses amount to 6 percent, which is four times more than the losses in the Czech Republic.
He also said that it is not a problem that 90 percent of gas distribution pipelines belong to the state. He said that the issue of their proper leasing was settled last year with their transfer to the management of the Energy and Coal Industry Ministry, and at present agreements are being signed. He said that the interests of the state and the owner of regional gas supply companies in long-term cooperation is mutual in this case.
“I don’t see a big problem that pipelines remain in ownership of the state: only people viewing long periods will be able to operate them with responsibility,” he said.
He did not disclose which particular gas distribution assets now belong to Group DF.
