Whether gas transit tariffs will double: NEURC is considering new rates for 2025-2029
8 November 18:32Gas transit tariffs may increase several times starting in 2025. Experts started talking about this scenario after the National Energy and Utilities Regulatory Commission announced that it was considering new tariffs for natural gas transportation.
on November 13, the NEURC will consider a draft resolution to set new tariffs for natural gas transportation for GTS Operator of Ukraine LLC for 2025-2029. The proposals envisage a significant increase in the cost of services, which may affect both international and domestic users of the Ukrainian gas transportation system (GTS).
According to the draft resolution, tariffs for international gas transit through the Ukrainian GTS may almost double. For example, for most entry points to the GTS, the tariff may increase from €4.1 to €10.3 per thousand cubic meters, and for exit points – from €7.6-8.6 to €14.6-15.8. The exception is the connections on the border with Russia, as there is no information on booked transit volumes for these points yet.
How will tariffs change for every Ukrainian?
According to the published draft resolution, the electricity transmission tariff will increase to UAH 665.26 per MWh, which is 25.8% higher than the current one. Oleh Popenko, chairman of the Committee on Housing, Public Works, Ecology and Environmental Protection of the Public Council at the Kyiv City State Administration, notes that the increase in tariffs will lead to another increase in the cost of all goods and services, especially energy-intensive enterprises such as water utilities.
At the same time, Volodymyr Omelchenko, Director of Energy Programs at the Razumkov Center, said in an exclusive commentary for [Komersant ] that it is too early to draw final conclusions, as Naftogaz has already stated that tariffs for households will remain stable through 2025. As for gas bills, consumers currently pay for gas as a commodity and transportation services, the latter of which may change.
“As for the cost of gas as a commodity, it will remain unchanged at least until the end of the heating season. However, the transportation tariff may change after the New Year due to transit problems. The contract with Gazprom is coming to an end, which may lead to a lack of funds for the Ukrainian gas transportation system operator, and this will force it to raise the transportation tariff,” said Omelchenko.
At the same time, Omelchenko emphasized that a significant jump in transportation costs should not be expected, as this process is also influenced by political factors.
Author – Anastasia Fedor