Naftogaz: gas prices will remain low even in the heating season

Нафтогаз: цены на газ останутся низкими даже в отопительный сезон

Existing gas reserves in underground storage facilities of Ukraine will keep gas prices in the country at a relatively low level even in the midst of the heating season. This was reported in the “Naftogaz of Ukraine”.

The company was reminded that traditionally in winter the demand for gas is increasing, resulting in tariffs on “blue fuel” go up in proportion to the growth of consumption, and in the summer when demand is minimal, prices fall back again. However, in this scenario, Ukraine is not threatened due to a record 22 billion cubic meters of gas accumulated in underground storage. Until October, this amount can reach 26 billion cubic meters. These reserves should be enough to keep gas prices in the country at a relatively low level even in the midst of the heating season.

The NAC also explained what changes bears opening 1 August the free market of gas for the population.

“This means that from now on the Ukrainians themselves are free to change gas supplier. For many years the price of gas in Ukraine was regulated by the Cabinet of Ministers through Naftogaz of Ukraine. The company was required to sell gas to intermediaries-monopolists, which is already at a premium resell it to the Ukrainians… Now Naftogaz of Ukraine can directly sell gas to the population, as well as other suppliers, and the Ukrainians are free to choose and change the supplier” — said the NAC.

The company also said that from August 1 the price of gas for the population, and in 2015 for the industry, determined by the market.

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“Until August 1, Naftogaz, in the framework of the duties assigned to him by the Cabinet, was supposed to sell gas to the sales needs of the population. The latter acted as a guarantor of uninterrupted supply of gas to households in every region of Ukraine. But this obligation was abolished. Now, if the user through force majeure will be left without a supplier (for example, he goes bankrupt), it will replace the supplier of last hope (PPN). And the consumer will have 60 days to find a new supplier,” explained to Naftogaz.

To opt out of the current gas supplier, July 1, the consumer must submit future trader application for accession, passport, tax identification number, last payment system for gas and certificate of housing ownership or power of attorney. Everything else will make the new supplier and the transition will occur automatically.

“In the future, active competition in the market will open for the population of many opportunities which he has been deprived under the old model of the gas market. Households, for example, will be able to choose suppliers with excellent service, great offers and promotions like those that make providers of Internet services and mobile operators,” added the company.