The National Commission For Energy Regulation (NCER) from January 1, 2014 cut the ceiling for the price of natural gas for industrial consumers by 10%, to UAH 3,113 per 1,000 cubic meters and by 29.2% for companies financed from the national and local budgets, to UAH 2,448 per 1,000 cubic meters (value added tax (VAT), surcharges, tariffs for transportation, distribution and supply are not included).
The decision was made by the regulator at a meeting on Monday.
As reported, the Ministry of Energy and Coal Industry on December 26 posted a draft cabinet resolution with the relevant recommendations to the NCER.
According to the resolution, the new price for gas, instead of the current UAH 3,459 per 1,000 cubic meters (excluding VAT, surcharges and tariffs for transportation, distribution and supply), will be UAH 2,448 per 1,000 cubic meters for the budget sector, and UAH 3,113 per 1,000 cubic meters for industrial enterprises.
The ministry proposed to retain the current price of UAH 1,309.20 per 1,000 cubic meters for municipal heat supply companies (taking into account VAT, surcharges and tariffs for transportation, distribution and supply), which is in line with the tariffs for gas for households that consume it not exceeding the limits for the tariff.
It is planned to cut the price for industrial companies every quarter. From the second quarter of 2014 the price should be UAH 2,752, from the third quarter – UAH 2,602 and from the fourth quarter – UAH 2,502.
The ministry said that as of January 1, 2014, natural gas stocks in underground storage facilities, the owner of which is national joint-stock company Naftogaz Ukrainy, will total 7.65 billion cubic meters at the price of UAH 3,207 ($401.22 as of December 27) per 1,000 cubic meters. According to the supplementary agreement signed by Naftogaz Ukrainy and Gazprom, from January 1, 2014 it is planned that gas will be bought at $268.50 per 1,000 cubic meter. It was proposed to gradually decrease the price of gas for industrial consumers.
As reported, the commission revised the tariffs for industrial consumers and budget sector in June 2013, cutting them by 1.4%, to UAH 3,459 per 1,000 cubic meters from July 1, 2013. Before the revision, the price did not change since January 1, 2012.
The National Commission for Energy Regulation regulates the activity of monopoly entities in the energy sector and oil and gas industries, and implements state price and tariff setting policies in these spheres.
