Government extends PSO for gas
15 April 2024 15:13
The Cabinet of Ministers of Ukraine has extended the imposition of special obligations on natural gas market players until the end of the summer. The Cabinet of Ministers issued the relevant resolution on 12 April, Komersant Ukrainsky 
reports.
It concerns the obligation for Naftogaz to supply gas to specific market participants at a clearly defined price.
By the current resolution, the government leaves the cost of gas for CHP plants with a heat cycle at UAH 16.5 thousand per 1000 cubic metres until 31 August, and for CHP plants with a condensation cycle at UAH 10.95 thousand per 1000 cubic metres.
As a reminder, on Thursday, 11 April, Russia attacked two Ukrainian underground gas storage facilities, which led to a 7.1% increase in gas prices in Europe. Currently, the price is 28.84 euros per megawatt (302 euros per thousand cubic metres).
PSO (Public Service Obligation) is a price regulation mechanism under which the government obliges a specific business entity to supply a product or service to another entity under clear conditions, including price. It is used to regulate prices for socially important goods, including natural gas. Thus, the government controls the price of heat supply for households, which includes the cost of gas. It is assumed that the government reimburses the business entity for the funds that it could have received if it had sold the goods at market prices.
