To create a competitive gas market the price must be transparent – the Association of energy suppliers

Для создания конкурентного рынка газа цена должна формироваться прозрачно - Ассоциация поставщиков энергоресурсов

According to the head of the “Association of energy suppliers” for the opening of the market of gas for the population need to understand the transparency of pricing that the state did not interfere in pricing and the market was not abuse of a monopoly position.

To create a competitive natural gas market the price of the resource should be transparent, without government interference and without abuse of monopoly power, whereas now the national joint stock company “Naftogaz of Ukraine” has possibility to set the price for the population below the market, hindering the development of competition and the arrival of new suppliers. This was stated during the conference of UKRAINIAN GAS OPEN the head of Board of “Association of energy suppliers” Artem Compan.

“Why was not informed of the interest of suppliers to work with the population? Because the price of gas was regulated by government, and this was not a market price. If we want to create a competitive market, we must, first and foremost, even in the presence of the JI mechanism, to give the market price for gas. A simple example: In July, Naftogaz has published the price of gas for the population of 2700 UAH per thousand cubic meters, and for the industry – 4100 UAH. The price for the population was much cheaper than the prices in the market. If “Naftogaz” with the obligations of PSO, and gave the price to the public at RS 4100, it would mean that we do the market works. And so we have a substitution of concepts,” said KOMPAN.

According to him, to open a market for gas for the population should be understanding transparency of pricing that the state did not interfere in pricing and the market was not abuse of a monopoly position”, – noted the head of Board of “Association of energy suppliers”.

KOMPAN added that the mechanism of the special public obligations (PSO) can continue to exist in the competitive market as a guarantee of gas supply for socially vulnerable segments of the population.

“In European countries there are both parallel mechanism and supplier of last resort, public and special obligations (PSO). It’s not against the rules of the Third energy package”, – said the expert.

In addition, the head of the “Association of energy suppliers” believes that in the new market of gas for the population will not be a competition between the suppliers without effective mechanisms for collecting debts from consumers.

“Any provider that wants to enter the market, must have effective instruments of enforcement. Which vendor wants to enter the market when he realizes that he has no tools to recover disable user impossible, to recover debts through the courts, as the institution of private court bailiffs, as practice shows, works with individuals very reluctantly. Ignoring this, the regulator has decided to allow the user to move to a new supplier with a debt for gas. In such circumstances, I doubt that would encourage providers to enter this market,” said KOMPAN.

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