The management of “Naftogaz Ukraine“, according to its press service, appealed to the government, for the cancellation of the provision on the assignment of special duties, because otherwise there will be a need to raise gas prices for Ukrainians by 15% from May 1st.
“Gas prices for retail domestic gas suppliers, producers of thermal energy, and other protected categories of consumers from May 1st 2019 rise by 15% to the level of 7184.8 hryvnia per 1000 cubic meters (excluding VAT and expenses on transportation and distribution). At the same time, the market price of gas for May published as of April 16th by the Ukrainian energy exchange is 6800 hryvnia per 1000 cubic meters with VAT, or 27% lower than the price calculated according to the demands of the Cabinet of Ministers,” commented Naftogaz.
As the company claims, without the decision of the Cabinet of Ministers for the cancellation of the provision on the assignment of special duties, Naftogaz has no right to independently reduce the cost of a resource that it delivers to retail suppliers of gas, producers of heat, and other consumers that fall under the operation of the provision on regulations for the imposition of special duties.
“On April 9th 2019 ‘Naftogaz Ukraine’ appealed to the Cabinet of Ministers to repeal the provision on the assignment of special duties approved by it which demand an increase in the price of domestic gas from May 1st 2019, or to make corresponding changes to it. For the time being, Naftogaz must comply with the implementation of the demands of Cabinet of Ministers resolution No. 867 from 19.10.2018, which approves the provision on the assignment of special duties on subjects of the natural gas market for ensuring public interests in the course of the functioning of the natural gas market,” noted Naftogaz.
The company said that resolution No. 293, adopted by the government on April 3rd 2019, does not exempt “Naftogaz” from the obligation to carry out the existing resolution No. 867, taking into account the norms of the direct operation of Articles 8 and 19 of the Constitution.
It also does not impose new special duties on “Naftogaz” and does not repeal a relevant provision on regulations for the imposition of special duties.
“Naftogaz repeatedly appealed to the government to repeal resolution No. 867 or to bring the price established by it to the market level. The violation of this provision threatens the company and its officials with responsibility for a violation of the license conditions of supplying natural gas, and responsibility for penal offences,” concluded Naftogaz.
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