You're reading: The government to change the tariff formation for natural gas

Cabinet resolution No. 510 of Sept. 3, 2014 on improving state policy in the regulation of natural gas transportation through main pipelines through the territory of Ukraine which introduces the state regulation in the gas transportation area and a new procedure for the tariff formation was published in the government's Uriadovy Kurier newspaper on Oct. 10.

“The resolution changes methods for the formation of transit tariffs. These are European methods and it is one of the grounds for signing a new contract on gas transit with Gazprom,” Energy and Coal Industry Minister of Ukraine Yuriy Prodan told.

The government approved a temporary procedure for the formation of tariffs for November-December 2014 and recommended national joint-stock company Naftogaz Ukrainy and public joint-stock company Ukrtransgaz to urgently take measures to bring the contract relations on natural gas transit via the territory of Ukraine in line with the temporary procedure for the formation of tariffs approved by cabinet resolution No. 510.

The procedure does not apply only to relations appeared between Naftogaz Ukrainy and Moldovagaz during gas transportation by pipelines on the territory of Ukraine and Moldova for consumers of border areas of the two countries.

In addition, the Uriadovy Kurier on Oct. 10 published cabinet resolution No. 915 of Oct. 1, 2014 on introducing emergency measures on the electricity market for the period of one month, which takes effect from the day followed the day when it was published. The measures are the same first introduced by cabinet resolution No. 764 of Aug. 13, 2014.