Ukrtransgaz initiated more than a hundred lawsuits for a total amount UAH 31 bln in debt collection for gas balancing services

Total debt for negative natural gas non-balances of market participants in 2016-2019 amounts UAH 43,8 bln. Among them the debt of GDN (gas distribution network) operators is UAH 34,8 bln. 

Today Ukrtransgaz has initiated 104 lawsuits to collect debts for negative non-balances on a total amount UAH 31 bln. Among them to GDN operators are for an amount of UAH 28,8 bln, to other market participants – on UAH 2,2 bln. These debts were accumulated up to and including June 2019. The assessed penalties for all claims are UAH 6,1 bln. 

Amount of debt 

Today the total debt for negative natural gas non-balances of market participants in 2016-2019 amounts UAH 43,8 bln.

Among them the debt of market participants for the balancing services provided in January 2016 - February 2019 (before the implementation of daily balancing) amounts to UAH 36,6 bln. Most of this debt is owed by GDN operators – UAH 27,6 bln. 

The debt of the market participants for negative non-balances in March-December 2019 (after the implementation of daily balancing) is UAH 7,2 bln, 99,9% of this amount was owed by GDN operators. 

Judicial appeals

Today, Ukrtransgaz has initiated 104 lawsuits to collect debts for negative non-balances on a total amount UAH 31 bln.

Among them 66 claims are against GDN operators for forced debt collection in amount of UAH 25,2 bln for balancing services in the period from January 2016 to February 2019, and also 31 claims in the amount of UAH 3,6 bln for daily non-balances in the period from March to June 2019. In addition, the company initiated 7 claims to other market participants for a total amount of UAH 2,2 bln. 

The assessed penalties for these claims to GDN operators are UAH 5,5 bln, and for other market participants - UAH 0,6 bln. 

Market participants have already paid Ukrtransgaz debts in the amount of UAH 8,8 bln for gas balancing in the period from January 2016 to February 2019. Among them UAH 8,5 bln were paid by the companies themselves and UAH 0,3 bln by courts’ decision. For the services of daily balancing (March-December 2019), market participants compensated for Ukrtransgaz debt in the amount of UAH 2,2 bln. 

Debt to NJSC «Naftogaz Ukraine» 

For its turn Ukrtransgaz owes to NJSC «Naftogaz Ukraine» for consumed natural gas for implementing balancing services and settlement of daily non-balance. As of today, the debt of Ukrtransgaz JSC to NJSC «Naftogaz Ukraine» for natural gas delivered for these purposes amounts to UAH 10,3 bln and assessed penalties are about UAH 4,6 bln. 

Except forced debt collection of the market participants, in particular the GDN operators, Ukrtransgaz has no other sources of reparation of its own debts to NJSC «Naftogaz Ukraine». Discussion on debt relief for GDN operators prevents further claim work of Ukrtransgaz and increases the losses of Naftogaz Group.