GTS Operator to earn UAH 225 bln over five years
In 2020-2024, the Gas Transmission System Operator of Ukraine (GTSOU) will earn UAH 225 billion (inclusive of VAT).
“The aggregate income of GTSOU in 2020-2024 will total UAH 225 billion. In particular, UAH 40 billion will come from gas transportation within Ukraine and UAH 185 billion – from transit (according to effective gas transportation tariffs approved by the National Commission for State Regulation of Energy and Public Utilities),” the press service of the Gas Transmission System Operator of Ukraine reports.
In fact, more than 80% of tariff revenue will come from the transit and less than 20% – from Ukrainian consumers.
“If the gas transit contract had not been signed, GTSOU’s revenue would have amounted to UAH 123 billion during this period, of which UAH 115 billion would have been received due to domestic transportation and only UAH 8 billion due to gas transportation to Moldova. In this case, 94% of the total tariff revenue would have been paid by Ukrainian consumers (enterprises, households, mining companies),” the company notes.
“In addition to direct receipts from transit, the tariff burden on industrial and individual Ukrainian consumers will significantly reduce. GTSOU’s tariffs for gas transportation have fallen significantly compared to what they would have been had there been no transit. For consumers (industry and population), the tariff has halved. Gas import and entry tariffs for gas production companies have plunged almost four-fold,” commented Serhiy Makohon, CEO of Gas Transmission System Operator of Ukraine.