NEURC increased tariffs for natural gas transit

The National Commission for State Regulation in the Spheres of Energy and Utilities (NEURC), at its meeting on December 30, adopted a resolution on establishing new tariffs for natural gas transportation for GTS Operator of Ukraine LLC for 2025-2029, ExPro reports.

The resolution comes into force on January 1, 2025. According to the resolution, it is planned to increase the tariff for entry/exit to the Ukrainian GTS for international points twofold:

• 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 exit points 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.

Transmission tariffs for interconnection points, €/tcm

In addition, the commission increased the 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 exit points from the GTS.

The coefficients for ordering capacity for certain periods for both domestic and international points were left 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 March 31, 2025.

The reduction coefficients were reduced for the first quarter of 2024, and from April 2024, they will be increased to a higher level than now.

Reduction multipliers for the capacity with restrictions that are applied to transmission tariffs for entry points and exit points to/from the gas transmission system at the cross border interconnection

The adopted tariffs minimally consider the comments submitted by market participants in November after the draft resolution was published on the NEURC website. Most of the associations and other participants registered at the meeting opposed the tariff increase, arguing that it was due to the opaque mechanism for calculating new tariffs and the increased costs for gas consumers and production companies.