NEURC approves draft resolution to increase gas transit tariffs

At its meeting on November 13, the National Energy and Utilities Regulatory Commission (NEURC) approved a draft resolution on setting new tariffs for natural gas transportation for GTS Operator of Ukraine LLC for 2025-2029.

The approved draft resolution will be published on NEURC's website, where comments and suggestions from other public authorities, individuals and legal entities, their associations, and other stakeholders will be received.

Tariffs for interstate points

According to the published draft resolution, it is proposed to double the tariff for entry/exit to the Ukrainian GTS for international points:

• from €4.1/tcm to €10.3/tcm for most entry points to the Ukrainian GTS;
• from €7.6-8.6/tcm to €14.6-15.8/tcm for most points of exit from the Ukrainian GTS.

The tariffs do not include the interconnection points on the border with Russia (Sudzha and Sohranivka), as there is no information on booked volumes for them.

The tariffs also consider the scenario of no Russian gas transit from the beginning of 2025. If an agreement on the transit of Russian or Azerbaijani gas is reached, the tariffs may be revised, and additional tariffs for entry into the Ukrainian GTS at the border with Russia may be set.

Tariffs for internal points

In addition, it is proposed to increase tariffs for entry/exit from the GTS for domestic points by more than 4 times:

• from 101.93 UAH/tcm to 464.87 UAH/tcm for internal entry points to the GTS;
• from 124.16 UAH/tcm to 505.5 UAH/tcm for internal points of exit from the GTS.

Coefficients for tariffs

The coefficients for ordering capacity for certain periods for both domestic and international points are proposed to remain unchanged:

• for ordering capacity for the day ahead - 1.1 for domestic and 1.45 for international;
• for the monthly period - 1.04 for domestic and 1.2 for international;
• for the quarterly period - 1.02 for domestic and 1.1 for international.

The current tariffs for short-haul gas transportation will remain unchanged until 31 March 2025.

It is proposed to reduce the reduction coefficients for the 1Q 2024 and to increase them to a level higher than the current one from April 2024.

GTSOU's position

“We are cutting costs, closing and mothballing some compressor stations. We are asking the regulator to consider revising the regulatory norm from 3% (profit - editor's note) to the level of the NBU discount rate (13% - editor's note). We are quite satisfied with the operational part of the tariff,” commented Dmytro Lyppa, CEO of GTS Operator of Ukraine.