November 2, 2018 (05:07)

The issues of the branch in figures in the case of PJSC KYIVOBLGAS

The current tariff for the operators of the gas distribution system, which was last reviewed in 2015, sets forth the cost of gas for industrial and technological needs of about 6 thousand UAH per one thousand cubic meters.  

Since then, the cost of gas has grown more than twice: in September 2018, NJSC “Naftogaz Ukrainy” announced the price for industrial enterprises at the level of 13 thousand UAH per one thousand cubic meters. Thus, at present, the current tariff for gas distribution covers the company’s economically feasible expenses by 31%.

This resulted in the turnover of personnel last year, which in comparison with 2016-2017 years has not changed this year and amounts to 13,17-12.26%. At present, the company has a shortage of skilled workers. Vacant posts often remain pending due to low wages.


At current tariffs for gas distribution, the level of wages in gas companies is by one third lower than that of industry in general, and it lags behind the average wage in the energy sector by 50%. Wage costs constitute only 30,2% of tariff revenues.  

The average monthly salary of the region’s industry in comparison with the average monthly salary in the company in 2016 is higher by 1366 UAH, or by 27, 22%; the average monthly salary was higher by 1376 UAH in 2017, or by 20,39% and during  6 months of 2018, it is higher by 1614 UAH or 22,45%.

The salaries of gas companies are limited by the tariff for the distribution of natural gas, which is a component of the gas price. This component has not changed since 2016. The revenue of Kyivoblgaz in accordance with the current price of natural gas for the population in the amount of 6.96 UAH per cubic meter,  on average is only 0,51 UAH.

The low tariff for gas distribution and the reduction of natural gas consumption makes  the company lose development opportunities and the ability to guarantee consumers safe use of natural gas, since the absence of working capital and significant losses endanger the high-quality and reliable operation of gas networks and implementation of investment programs.

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