The heating season is at risk of disruption. Poroshenko sounds the alarm

The heating season is at risk of disruption. Poroshenko sounds the alarm

Will the country have heat this winter? Officials are not sure

The heating season, which everyone traditionally awaits with apprehension, has become another battleground for competing groups within the government. As cold weather approaches, interested parties use it not only for PR but also to accuse opponents of inefficiency and failure.

Deputy Prime Minister, Minister of Regional Development, Construction and Housing and Communal Services Hennadiy Zubko has already stated that the country’s technical readiness for the heating season stands at 97,6%. Prime Minister Volodymyr Hroysman reported that 9 billion hryvnias were allocated this year for preparation for the heating season, 1,8 billion more than last year. But despite these triumphant statements for the general public, officials are hiding the true state of affairs.

A letter from Dmytro Vovk, head of the National Commission for State Regulation of Energy and Public Utilities (NERC), to Prime Minister Volodymyr Hroysman — headed “Regarding the threat of disruption of the heating season” — fell into the hands of Hlavkom. In this letter the commission effectively levels accusations against the NAK Naftogaz of Ukraine, claiming it is sabotaging preparations for winter.

NERC complains that gas distribution system operators and heat producers are massively appealing to the commission with complaints about Naftogaz’s actions, which have created a critical situation in supplying natural gas to thermal energy facilities. Citing the Law “On the Natural Gas Market,” a Cabinet regulation (on imposing special obligations on natural gas market participants to ensure public interests in the functioning of the natural gas market), and a NERC resolution (on rules for natural gas supply), Vovk reminds in his letter that Naftogaz is obliged to supply natural gas to heat producers provided there are proper settlements. If there is debt, the NAK can suspend gas supply or impose fines. But under no circumstances can it refuse to conclude a gas supply contract with those heat producers who fall under the provisions of the aforementioned Cabinet regulation. According to the Commission, there are currently heat producers with whom Naftogaz still has not concluded the appropriate contracts. In addition, the NAK is massively failing to formalize gas acceptance-transfer acts with consumers after a month of supply.

The Commission emphasizes that, according to the Cabinet regulation, Naftogaz is obliged to supply gas to heat producers in the name of “public interests.” The letter also recalls that Naftogaz receives preferential gas resources from state extraction sources for this purpose.

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So what will happen if the NAK still does not sign the contracts? But even without contracts, the monopolist, under the already mentioned government order, will be forced to supply gas to heat producers during the winter period and record this as unauthorized withdrawal. Thus, the letter notes that Naftogaz not only does not initiate measures to stop gas supply to debtors, it also does not have contracts with gas distribution operators for such services. Meanwhile, communal heating enterprises are only increasing their debts to Naftogaz, because household arrears for utility services are growing.

But if the withdrawal is unauthorized, the scheme described in Vovk’s letter may come into play. Naftogaz will then levy corresponding sanctions against the gas transmission network operators that supplied gas to the heating utilities, demanding payment for such gas with a coefficient of 1,2. Those operators, in turn, will file corresponding claims against the heating utilities, but with an even higher coefficient. However, if heat producers do not have funds to pay the regular price, they certainly will not have funds to pay the increased price. Understanding this, the transporters may simply disconnect some heating utilities from supplies, which in winter would lead to catastrophic consequences.

The situation is further complicated by the fact that the government still has not settled on the price of gas — the prime minister loudly promised in the summer that prices would not rise, although Naftogaz’s financial plan foresaw an increase. Hroysman, with his inclination toward social populism, simply cannot afford to further enrage the public with higher bills. Pro-presidential Vovk’s complaints about the NAK, headed by the Fronts’ appointee Andriy Kobolyev, are just one illustration of the struggle between these groups for influence over the monopolist company. Volodymyr Hroysman, the direct recipient of the letter, is also very interested in strengthening his control over Naftogaz. He is waging a prolonged battle with Kobolyev for control over the NAK’s supervisory board.

Pavlo Vuyets, Hlavkom