11.02.2025
The Temporary Investigative Commission of the Verkhovna Rada of Ukraine on the investigation of possible violations of the legislation of Ukraine in the formation and implementation of price and tariff policy in the energy and utilities sectors has published the preliminary results and conclusions of the investigation.
The Commission found that the establishment of tariffs for gas transportation through main gas pipelines in December 2019 for the regulatory period of 2020-2024 was carried out in a non-transparent manner and with violations of the Tariff Determination Methodology. This, in turn, had a significant impact on the increase in tariffs for Ukrainian consumers for the regulatory period of 2025-2029.
In particular, the commission established that the National Commission for the Regulation of the State Gas Transport System and LLC “OGTSU”, in violation of the Tariff Determination Methodology, the Law of Ukraine “On the Natural Gas Market”, the Law of Ukraine “On the National Commission for the Regulation of the State Gas Transport System”, the Law of Ukraine “On Natural Monopolies” and in favor of NJSC “Naftogaz of Ukraine”, underestimated the value of the state property of the gas transportation system and, accordingly, underestimated the projected level of profit accrued on the value of the state property. At the same time, the tariff (required income) included an amount of allegedly under-received income by the previous licensee in the amount of UAH 48 billion, which is a direct loss to the State Budget of Ukraine.
The Commission believes that the above violations may have signs of corruption in the distribution of the required income between the current and previous licensees and the use of tariff revenue in violation of the Tax Code of Ukraine, the Tariff Setting Methodology, as well as the Transportation Licensing Conditions, in terms of providing cross-subsidies at the expense of the economic activity of gas transportation through main pipelines.
The full results of the investigation will be published later.
