The relevant draft resolution was approved at the regulator's meeting on Tuesday, which was broadcast online. If officially adopted, the new tariffs will be effective from June 1, 2026, until March 31, 2029.
Key Tariff Changes
The draft resolution proposes the following rates for "Ukrtransgaz" (excluding VAT):
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Gas storage: 0.45 UAH per 1,000 m³ per day.
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Gas injection: 360.02 UAH per 1,000 m³ per day.
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Gas withdrawal: 360.02 UAH per 1,000 m³ per day.
According to Energoreforma calculations, the storage tariff is set to increase by 12.5% (from 0.40 UAH), the injection tariff by 47.8% (from 243.52 UAH), and the withdrawal tariff by 42.3% (from 253.03 UAH).
Shift to Incentive Regulation
Currently, "Ukrtransgaz" operates under a "cost-plus" methodology. However, the law on natural monopolies allows for the application of incentive regulation. To curb the sharp rise in tariffs, the commission suggests a rate of return of 3% for both existing and future regulatory asset bases.
Additionally, the commission aims to encourage long-term capacity booking, which is currently dominated by "day-ahead" and monthly orders. To achieve this, the following coefficients are proposed:
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Annual booking: 0.9
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Base season (injection/withdrawal): 1.0
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Monthly booking: 1.1
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Day-ahead booking: 1.2
Expert Opinion
Andrii Zakrevskyi, Deputy Director of the Association of Energy and Natural Resources of Ukraine, described the NEURC decision as a long-awaited move that aligns with European standards. He noted that the "cost-plus" model is outdated and should be replaced by a transparent incentive-based mechanism.
Zakrevskyi highlighted that storage tariffs have not been revised since July 2022 and currently fail to cover maintenance and restoration costs, especially given the frequent Russian attacks on storage facilities.
Despite the hike, Zakrevskyi estimates that the change will not affect end consumers:
"Fixed tariffs remain in place for the population, while the impact on businesses will be minimal."
He also pointed out that the proposed 3% rate of return is significantly lower than in other energy sectors, such as electricity distribution, where profitability can reach 18%.
