Government extends gas PSO: new prices for power generation and obligations for GTSOU

The Cabinet of Ministers of Ukraine, at its meeting on 10 October 2025, approved amendments to the current mechanism of imposing special obligations on participants of the natural gas market to ensure public interests in the functioning of the gas market.

Thus, the Cabinet of Ministers introduced amendments to Resolution No. 222 of 6 March 2022, according to the official government website.

According to the new changes, the term of the PSO for the supply of natural gas to household consumers, gas distribution system operators, the supplier of last resort (Naftogaz of Ukraine GSC), and power producers using natural gas will be extended until 31 March 2026, inclusive, instead of 31 October 2025, as defined by the previous resolution.

Reasons for PSO changes

The current Resolution No. 222 of 6 March 2022, with subsequent amendments, provides for the supply of natural gas to certain categories of consumers at special preferential prices under PSO terms until 30 October 2025.

There is also a moratorium on increasing natural gas prices for households until the end of martial law, so the government had to extend the current gas prices for households and other consumers.

In addition, ahead of the heating season, Russia carried out a new massive attack on Ukraine’s gas infrastructure, which significantly damaged domestic gas production. Thus, Ukraine needs to increase gas imports to cover all consumer demand. Considering the destruction of energy infrastructure, the country also requires additional gas-fired generation capacity.

Ukrnafta remains under PSO

The Government also extended special obligations for Ukrnafta to sell natural gas of its own production to Naftogaz of Ukraine for further supply to consumers covered by the PSO.

Since April 2025, Ukrnafta has been selling all gas of its own production except for volumes used for technological needs, internal consumption, electricity generation, LPG, and stable gasoline production.

In recent months, the market had speculated about the possible removal of Ukrnafta from the gas PSO as of 1 November 2025, which would have had a significant impact on the domestic gas market. However, following Russian attacks, the decision was made to extend PSO for Ukrnafta.

Thus, Ukrnafta is obliged to sell its natural gas to Naftogaz at a fixed price of 12,000 UAH/tcm (incl. VAT) until 31 March 2026.

Ukrgazvydobuvannya and Chornomornaftogaz are also required to sell all their gas to Naftogaz at a fixed price of 7,420 UAH/tcm (incl. VAT).

Import PSO for GTS Operator

The Cabinet of Ministers of Ukraine also obliged the Gas Transmission System Operator of Ukraine (GTSOU) to purchase exclusively imported natural gas from the effective date of the Resolution until 31 March 2026. The volume of imported gas to be purchased by GTSOU during this period amounts to 340 mcm.

The company may buy natural gas with delivery at the border between Ukraine and EU member states or at underground gas storage facilities, including under the “customs warehouse” regime.

New gas prices for power generation

In addition, as previously forecast by ExPro, the Cabinet of Ministers of Ukraine raised gas prices supplied under PSO terms for power producers using natural gas.

According to the amendments, the term of the PSO for supplying gas to such producers was extended until 31 March 2026. The supplier remains Naftogaz Trading.

Prices in Naftogaz Trading contracts with power producers were changed as follows:

• For combined heat and power plants (CHPs) generating electricity in cogeneration mode – from 18,000 to 21,000 UAH/tcm (incl. VAT).
• For thermal power plants (TPPs) and CHPs generating electricity in condensation mode – from 14,000 to 16,000 UAH/tcm (incl. VAT).
• For gas turbine and gas piston units generating only electricity – from 14,000 to 16,000 UAH/tcm (incl. VAT).
• For gas turbine and gas piston units generating both electricity and heat – from 18,000 to 21,000 UAH/tcm (incl. VAT).

The increase in prices for gas supplied to power producers under PSO terms is likely related to higher natural gas prices on the domestic market. There had been speculation about the possible cancellation of PSO for gas-based power producers; however, against the backdrop of energy infrastructure damage, the PSO was extended.

Where to find natural gas market analytics?

Detailed analytics of the natural gas market in Ukraine, including production, imports, exports, UGS reserves, trading results, natural gas prices, key news, etc., are published in specialized publications ExPro Daily Gas, ExPro Gas&Oil Weekly, and ExPro Gas&Oil Monthly.

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