Government extends gas PSO: what has changed?

The Cabinet of Ministers of Ukraine, at its meeting on March 30, 2026, approved amendments to the existing mechanism of public service obligations (PSO) imposed on natural gas market participants to ensure public interest during the functioning of the gas market.

The government introduced changes to Resolution No. 222 of March 6, 2022, according to a statement published on the official government website.

Under the new amendments, the PSO mechanism for the supply of natural gas to household consumers, gas distribution system operators, the supplier of last resort (Naftogaz of Ukraine NJSC), and electricity producers using natural gas is to be extended until September 30, 2026, inclusive, instead of March 31, 2026, as defined by the previous resolution.

Previous amendments

It should be recalled that in mid-March the government had already amended this resolution, excluding gas turbine units (GTUs) and gas piston units (GPUs) that generate only electricity from the PSO mechanism.

Since March 12, 2026, these units have been purchasing natural gas for electricity generation on the free market. The new resolution also abolishes preferential natural gas prices for all electricity producers, including thermal power plants (TPPs) and combined heat and power plants (CHPs).

At the same time, a preferential price of 19,000 UAH/tcm (incl. VAT) will remain in place for TPPs, CHPs, GTUs, and GPUs whose electricity generation facilities are commissioned for the first time starting from December 1, 2025. This preferential price applies only to new facilities located in Chernihiv, Sumy, Kharkiv, Dnipropetrovsk, Donetsk, Zaporizhzhia, Kherson, Mykolaiv, and Odesa regions, i.e. frontline regions.

The list of such entities is to be approved by the Ministry of Energy upon submission by NPC Ukrenergo, specifying, for each entity, the volumes and period of natural gas consumption.

Ukrnafta remains under PSO

The Cabinet of Ministers has extended PSO obligations for Ukrnafta JSC regarding the sale of domestically produced natural gas to Naftogaz of Ukraine NJSC for further supply to PSO-covered consumers until September 30, 2026.

It should be recalled that since April 2025, Ukrnafta has been selling all of its domestically produced gas, except volumes used for production and technological losses, own needs, electricity generation, LPG, and stable gasoline production.

Under the previous resolution, the government also obliged Ukrnafta to purchase imported gas using borrowed funds in case of a critical situation until the end of 2026.

Changes for the GTS Operator of Ukraine

GTS Operator of Ukraine was previously expected to purchase 340 mcm of imported natural gas starting from October. The new resolution reduces this volume to 337.45 mcm. This adjustment reflects the fact that GTS Operator of Ukraine had already procured 328.3 mcm with delivery during November 2025 – March 2026. The lower volume is explained by a recalculation of the higher heating value coefficient following the closure of January 2026.

The government also extended the obligation to procure imported gas until April 15, 2026. At the same time, due to high natural gas prices in Europe, GTS Operator of Ukraine has been unable over the past month to find suppliers willing to sell imported gas on the Ukrainian Energy Exchange.