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Gas Prices To Increase By 20% From 1st September in Ukraine

July 25, 2009

Well dear readers, it appears that the officials in Ukraine have succumbed to the requests of the IMF and will increase the cost of gas to both corporations and the public from 1st September 2009.

GU 1

The National Electricity Regulation Commission……yeh I know, where does it say in their title they are responsible for gas pricing…….has stated.  This is, of course on top of the 35% rise in gas prices announced in October 2008 which came into effect in December 2008……..so a 55% rise in gas prices within 10 months.

There seems to be some for of system…….which as usual is not clearly stated or defined……which states that is usage is less than 2500 cubic meters then the price will be in the region of 0.58 UAH per cubic meter.  Useage between 2500 and 6000 cubic meters the price will be about 0.878 UAH per cubic meter…..with a meter…..and 0.966 UAH without a meter.

GU 2

………Quite how it can be ascertained what an individuals use is without a meter is beyond me……so if you are meter-less and use less than 2500 cubic meters per year……..who knows what “estimated” bill you will get at the highest rate of 0.966 UAH per cubic meter…….because you don’t have a meter.

Now, my annual useage……which is metered is above 2500 cubic meters…….in fact to get it to 2500 cubic meters or less would mean I didn’t have a gas appliance used regularly throughout the year……..and my hot water system and oven and hob are all gas…….so I’m screwed.

If you are unlucky enough to have old systems which are not particularly efficient……..like most heating systems in older Soviet style buildings…….and even some modern buildings…….due to “tradesmen”…….I use the word in the loosest possible terms……..doing things “the way they have always been done” rather than using systems much more economical which have been in use in the UK for at least 25 years…….then the fact your building may be only 3 months old does not necessarily mean that there will be significant savings on utility bills compares to a Soviet style building……….

GU 3

Anyway, if you use more than 6000 cubic meters of gas per year but less than 12000 cubic meters…….the cost is going to be about 1.798 UAH per cubic meter……….with a meter……..without a meter it will be around 1.977 UAH.

Errrrm…….Yes I am aware there is nothing stopping the authorities saying an unmetered user……who actually used less than 2500 cubic meters a year…….used 11987 cubic meters……..because who can prove otherwise…….and charging 1.977 UAH per cubic meter.

But wait…….what if you use more than 12000 cubic meters……..well without a meter you know what is going to happen……..you do…….don’t you!!

If you use over 12000 cubic meters of gas per year…..if you have a meter…..you will pay in the region of 2.148 UAH per cubic meter……….without a meter you will pay 2.362 UAH per cubic meter.

Obviously without your own meter……..you can expect the exceptionally transparent energy business sector of Ukraine to miraculously calculate that you one ring gas burner has racked up an astronomic gas usage meaning you pay 2.362 UAH per cubic meter……..as estimated by someone……..somewhere………who cannot really be identified or questioned over their calculations……..because nobody really knows how the figure was arrived at…….or who calculated it……..but it is on the bill so you have to pay it or be cut off!!

GU 4

This is, however, an effective way to stimulate the economy by sales of gas meters and reinvigorate the gas meter fitting industry inside Ukraine……whilst also pleasing the IMF……and thus allowing Ukraine to borrow more money it doesn’t have.

It is far easier to pass the costs on to corporations and the individual members of the public than it is to come to agreement with the EU and Russia on upgrading the existing gas pipe infrastructure which leaks quite a bit more than 12000 cubic meters of gas per year.  In fact some uncorroborated sources state 8% of gas going through Ukraine’s gas pipeline escapes.

With just over 120 billion cubic meters of gas going through Ukraine in 2009……according to BBC figures I found…….that means around 9.6 billion cubic meters escapes into nothingness.

If it was not metered that would be almost 22.7 billion UAH at the highest rate in revenue lost on unconsumed gas!!

Still, as the politics of Ukrainian gas is difficult and putting up prices is easier……..

GU 5

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