GTSOU sued regional gas companies for UAH 238 mln for debts on gas offtakes

November 4, 2020, Kyiv – Gas TSO of Ukraine has obtained favorable judicial decisions in the first three litigations against the regional gas distribution system operators (DSO) for recoverability of debts for imbalances in the total amount of UAH 229. 7 million, including interest, inflation losses and 3% per annum. Namely, debt enforcement of UAH 158,4 million from PJSC Ternopilmiskgaz, UAH 61 million from OJSC Kirovogradgaz and UAH 10,2 million from PJSC Melitopolgaz.

Economic courts are currently considering 19 more similar lawsuits against other debtors-DSOs. In addition, based on the statements of Gas TSO of Ukraine NKREKP decided to conduct an unscheduled inspection of four largest debtors– OJSC Kirovogradgaz, PJSC Ternopilmiskgaz, JSC Luganskgaz, and PJSC Donetskoblgaz.

“DSOs shall, as a matter of priority, ensure proper fulfillment of obligations as stipulated in the contracts on gas transportation and the Code of GTS without bringing the situation to adoption of judicial recovery measures. As timely settlement of negative imbalances by DSOs guarantee stable operation of Ukrainian GTS. Debts for the gas offtakes washes away the working capital of the GTSOU, so we are determined to use all legal means to protect the Company”, emphasized Sergii Makogon – CEO of Gas TSO of Ukraine LLC.

The indebtedness of DSOs for imbalances is the biggest problem in domestic gas market of Ukraine for independent Gas TSO of Ukraine. Debts pose significant risks to the financial stability of GTSOU and are detrimental to the state as a shareholder, which therefore will not receive dividends on the basis of the fiscal year results. By the beginning of the heating season 2020/2021 regional gas distribution system operators have accumulated 1 billion UAH of debts to GTSOU, and the level of their settlements since the beginning of the year amounted to as little as 25%.

GTSOU insists on systematic regulatory solution to the problem of non-payments, which is defined in Bill 3800 and is under consideration of the Verkhovna Rada of Ukraine. Recently, the Chairman of Verkhovna Rada’s Committee for Fuel & Energy expressed his opinion about inadmissibility of further accumulation of debts by DSOs. The situation is not improving in any way, so we have to react and possibly introduce some special accounts and algorithms, using which companies will be forced to work. We cannot tolerate the increasing of debtsto enormous amounts. We would like companies to understand this and act in a responsible manner. Took the goods pay for them. If you don’t want to pay, do not take,” said Andriy Gerus during his speech at the Sixth Ukrainian Gas Forum.