NERC Seeks to Revive Gas Supply Limits for Ukrgaz-Energo
11 January 2008
According to Interfax, the National Electricity Regulation Commission resumed the limit for Ukrgaz-Energo’s natural gas deliveries to final consumers to 5 bln m3 annually, based on a ruling by the Supreme Economic Court. In 2007 the limitation was not in effect. We consider the restriction hardly enforceable, but if enforced it is likely to result in USD 10-15/tcm higher prices for the industry, as Ukrgaz-Energo will have to sell more gas to traders rather than to consuming enterprises.
