The decision was backed by five members of the relevant tender commission on July 10.
Ukraine's Energy Ministry says LLC Naftogaz of Ukraine GSC (Gas Supply Company) that offered a zero margin at the tender has been selected as the "last resort" gas supplier as part of the opening of a competitive gas market for households from August 1.
"Today, the Energy Ministry has identified the 'last resort' supplier on the natural gas market, i.e. LLC Naftogaz of Ukraine GSC," the ministry's press service said on its website on July 10.
The decision was backed by five members of the relevant tender commission on Friday, the report said.
"The price offer of LLC Naftogaz of Ukraine GSC is UAH 2,711.86 (US$100.71) per 1,000 cubic meters with VAT and zero margin. In total, three companies submitted their bids to the tender. After a detailed review of the documents, one of the companies was not admitted to the tender by the commission," the ministry said.
According to the resolution of the Cabinet of Ministers, the winner of the tender is chosen by tender commission members' voting on the admitted candidate that offered the lowest price of natural gas at which the "last resort" supplier delivers natural gas to a consumer. The price is calculated according to the formula with a clear definition of the "last resort" supplier's margin. It should not be higher than 20% of the maximum price prevailing in the natural gas market in the previous month.
As UNIAN reported, the National Joint-Stock Company Naftogaz of Ukraine earlier said it had submitted two bids for the "last resort" supplier tender. The first bid was from NJSC Naftogaz of Ukraine, which offered a 5% margin. The second one was submitted from LLC Naftogaz of Ukraine GSC with a zero margin.
UNIAN memo. In late June, Ukraine's Cabinet of Ministers extended NJSC Naftogaz of Ukraine's special obligations to sell natural gas at preferential prices under the terms of public service obligations for households until August 1, 2020. A "last resort" supplier is a company that is obliged to provide a consumer with gas within 60 days if the latter is left without a supplier.