Gas distribution tariff in Ukraine risks unauthorized offtakes

A pending decision by the national energy regulator of Ukraine, NEURC, may withdraw an earlier decision to increase the gas distribution tariffs in Ukraine. Without distribution tariffs set at an adequate level, unauthorised offtakes of natural gas will persist, impairing the financial stability of the new transmission system operator and putting gas sector reforms at risk.

Were such a decision to be adopted, it would also threaten the financial viability of the distribution system network operators and undermine market-oriented gas market reforms, including the creation of a gas exchange.