NERC increases gas distribution tariffs by 46.2%, supply tariffs by 28.75% on average

At its meeting yesterday, the National Electricity Regulatory Commission (NERC) approved increase in tariffs for gas distribution and supply. The average tariff for gas distribution was raised by 46.2% to UAH 81.3/ths cm (USD 16.8/ths cm). The average tariff for gas supply was upgraded by 28.7% yoy to UAH 34/ths cm (USD 7.0/ths cm). New tariffs will come in force since September 1, 2008. According to NERC, new tariffs will allow fully covering operating costs of GasCos. Alexander Paraschiy: The increased tariffs for gas distribution and supply will raise final gas price by 13.5% for households and by 2.7% for industrial enterprises which are GasCos’ customers. According to trade union representatives, new tariffs still do not account for investment needs of GasCos in network maintenance and reconstruction – we expect another increase of tariffs to account for these components in late 2008 or early 2009.