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GasCos To See Their Receivables Grow?

GasCos To See Their Receivables Grow?

23 January 2007

According to a government decree, Gaz Ukrainy and Ukrgazenergo obtained the right to collect money for gas transportation from their customers. Previously, only regional/district gas distribution companies (GasCos) and Ukrtransgaz had a right to collect transportation fees. This decree should make things easier for gas consumers, as now they can sign all gas supply/transport contracts with a single company. Alexander Paraschiy: Now natural gas monopolies will charge their non-residential customers for both gas delivery and export/production. In addition they will also collect money for gas transportation, a service provided by GasCos, and only later direct this money to GasCos. On the one hand this could be good news for GasCos as now the companies will not be responsible for poor payment discipline of industrial consumers. However, on the other hand, this raises the risk that GasCos will not obtain payment for their services in time: small gas distribution companies have little influence on the large monopolists to ensure prompt payments.

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