Naftogaz will create a fixed-rate gas payment plan in April that protects residential consumers from seasonal gas price spikes in the upcoming heating season, the country’s top gas producer announcement March 25.
Under the new plan, gas prices will remain fixed throughout the year and consumers’ bills will only vary according to the amount of gas consumed. All customers will default to the annual fixed rate plan starting in May. All gas supply companies will offer an annual lump sum payment plan, according to Naftogaz.
Consumers will be able to switch back to the monthly plan at will. Changing domestic gas supplier is also possible at any time.
Naftogaz was the first Ukrainian gas supplier to introduce an annual plan in August 2020 but suspended it in January 2021 due to a lack of consumer demand.
However, Naftogaz customers who subscribed to its annual plan last year continue to pay fixed tariffs ranging from 4.7 Hr (17 cents) to 6.45 Hr (23 cents) per cubic meter. That’s cheaper than the company’s April price for its regular customers. — Hr 6.86 (25 cents) per cubic meter.
“The benefits of the annual tariff and its flexibility have already been appreciated by Naftogaz customers,” said Andriy Kobolyev, CEO of Naftogaz.
The new annual fixed rates will be unveiled on April 25, Interfax-Ukraine reported. Naftogaz has already signed its first big deal for the purchase and sale of natural gas with the main supplier JE ENERGY at the beginning of the week.
Artem Kompan, the director of JE ENERGY, says the contract creates “healthy competition between suppliers”, encouraging them to improve their services or offer more reasonable fixed tariffs to attract consumers.
“The annual contract is an insurance against possible price increases in the next heating season,” Kompan told the Kyiv Post.
The businessman says Ukrainians will be able to better manage housing and utility costs when gas prices are “more predictable”, and it will also make it easier for the state to plan the costs of subsidies and utilities. benefits for vulnerable populations.
Long-term contracts will also benefit natural gas producers, ensuring their gas will be purchased, Kompan said. This allows them to estimate profits and plan their investments accordingly.
“Long-term contracts between market players provide more predictability and stabilize the situation on the internal gas market,” the director said.
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