Ukrainian President Volodymyr Zelensky / Photo from UNIAN by Oleksandr Kuzmin
Ukrainian President Volodymyr Zelensky says Ukrainian households can freely choose their gas supplier with the most favorable terms, adding that certain state-owned companies, in particular LLC Naftogaz of Ukraine GSC (Gas Supply Company), may help them save on gas bills.
He made the comment during a working trip to Ivano-Frankivsk region, as reported by the President's Office on December 31.
"State-owned companies are needed to work in the interests of society, to create profitable opportunities for ordinary people. Naftogaz must clearly show Ukrainians how the company will provide cheaper gas," he said.
Zelensky added that he had already discussed the issue of prices for households with Naftogaz CEO Andriy Kobolyev.
"Despite the fact that the country has switched to the gas market and the market dictates prices, Naftogaz still has the lowest prices compared to all suppliers," Zelensky said.
Read also Naftogaz opens new gas field in Poltava region Over 50 companies supply natural gas to households in Ukraine nowadays. Depending on the supplier and the region, gas prices differ significantly. For example, LLC Naftogaz of Ukraine GSC (Gas Supply Company) will sell gas at UAH 7.22 (US$0.255) with VAT per cubic meter in January, while regional gas suppliers' average price is set UAH 9.9 (US$0.350) with VAT per cubic meter.
Private suppliers in different regions of Ukraine sometimes set the gas price that is 30%-40% up from those set by LLC Naftogaz of Ukraine GSC.
"We have even found one company that offers a 50% higher price than that of Naftogaz," the president said.
"Naftogaz will offer the lowest prices on the market. And it will fight for a price reduction despite the market. People need help over COVID-19," he added.
Read also Gas transmission to households to rise in price from Jan 1 Zelensky also called on local authorities to explain to households how to save on gas bills, inter alia, by choosing a state supplier, as well as using the services of state-run Oschadbank.
LLC Naftogaz of Ukraine GSC consistently offers the lowest prices on the market. Each household that buys gas in Ukraine can freely change a supplier by choosing the state-owned company. This is especially important for those citizens who use gas to heat private houses. This refers to over 6 million households. By choosing the said company, each of such consumers can save over UAH 600 (US$21.22) on the average as early as in January.
Now, one can change a gas supplier remotely via the Internet and at partner offices. If the consumer decides to choose a new supplier, this does not require agreement with the previous one or replacement of equipment. The new supplier independently solves all formal issues related to the transfer of the consumer to another company. Benefits and subsidies remain in effect when the gas supplier is changed.
LLC Naftogaz of Ukraine GSC and Oschadbank will be expanding their network for new customers from the middle of January 2021. Ukrainians will be able to change their gas supplier by addressing the nearest branch of Oschadbank. Efforts of two state-owned companies will help citizens save money. In comparison with the terms offered by other companies, the choice of Naftogaz of Ukraine GSC as a supplier will help to save up to 40% in gas payments.
Gas prices set by other suppliers
Prices of gas offered by other suppliers range from UAH 7.39 (US$0.26) to UAH 10.8 (US$0.38) per cubic meter.
Ukrainian regional companies covering two-thirds of the households offer gas to their consumers at UAH 8.75 - UAH 10.8 (US$0.31 - US$0.38) per cubic meter, depending on their region. Thus, the floor price of natural gas sold by such companies increased by 26.8%, while the ceiling one grew by 20.5%.
The highest price of gas for the first month of 2021 was fixed by Lvivenergozbut, that is UAH 10.8 (US$0.38) per cubic meter.
In total, 55 gas suppliers published their January price quotations as of December 28.
- The average price of gas for Ukrainian households in December 2020 was within the range of UAH 6.33 (US$0.22) to UAH 8.96 (US$0.32) per cubic meter.
- On August 1, the natural gas market became opened for the country's households, allowing them to select a gas supplier.
- National Joint-Stock Company Naftogaz of Ukraine's public service obligations (PSOs) to supply gas to households expired, but municipal heating companies will continue receiving gas at prices regulated by Naftogaz.