Events

05
June 2008
«A round table» on a theme «the Policy of the government concerning the subsequent destiny of regional gas economy and formation of the gas market in Ukraine»
The safety price

Experts about gas distributive networks

«Gas explosions in housing sector will last, as Ukraine has come nearer to border of a technogenic pulling down of gas distributive networks. At the same time, the state actually has no accurate plans concerning their reconstruction» - participants of the "round" table organized by Kyiv international energy club "Q-club", marked on June, 5th. Normal development of corresponding branch is prevented by bureaucrats who since 1994 break the decision of urgent problems »- the president of «Q-club» Alexander has declared during discussion. In his opinion, «absence of the appropriate legislation, game rules in the market becomes to favorable for separate representatives of the government as it gives the chance to head the branch in a "manual" mode». «It is not necessary to invent anything concerning activity conditions of gas distribution systems-it is enough to adapt for conditions of Ukraine experience, for example, of Russia or the countries of Baltic which have considerably outstripped Ukraine on a way of their reforming» - Todiychuk considers. Participants of discussion noticed that «absence of the practical legislation in gas supply and using of branch gas networks» is a brake for normal activity of regional gas economy. «We likely have exhausted the concept of 1994» and now relations in which regional gas economy are, «actually contradict the current legislation» - Vasily Marchuk, the chairman of board of Open Society "Lvivgas", has declared. According to requirements of his colleagues, «game rules in the market should be established at legislative level». That is the state should solve, «that it will do with the gas networks». If the state transfers these networks «in using of the specialized organizations, requirements should be elaborated to these organizations at legislative level, and also the transparent mechanism of formation of tariffs» should be fixed, Marchuk considers. According to Ivan Varqa, the adviser of the minister of fuel and energy, state action should be systematic. First of all, the corresponding state concept, and also a number of base laws and statutory acts should be elaborated which would covered widely sphere of relations in a triangle «gas consumers - gas distributive companies - transitors», he considers. Participants of a "round" table plan to address with the offers to the President, government and parliament. Discussion materials will be promulgated in the near future.


    Thesis

  • Pavel Kachur: «it is necessary to provide the target extra charge to the price for gas in the budget for 2008 for modernization of gas networks»

    «I suggest following the results of discussion in the Kiev international energy club to direct offers to the Law on the state budget concerning an establishment of the special-purpose extra charge to the price for gas and to provide its use on modernization of gas networks», Pavel Kachur, the chief executive of the Alliance «New energy of Ukraine» has declared. As is known, now the government prepares changes for the Law of Ukraine «About the State budget for 2008».

    According to the expert, «modernization of networks needs to be lead immediately». Thus «it is important to outstrip shadow transition of gas networks in the property of private structures» - Kachur has noted. In his opinion, «one of approaches to the problem decision - modernization of systems at the expense of the extra charge which has a special-purpose designation». Whether it is possible to include it in the tariff? «It is undesirable, because disputes and judicial claims from private operators that modernization is executed for their means, are not excluded in the future» - the expert considers. «If the extra charge to the tariff for modernization is special-purpose, the bases for ambiguous treatment will not be» - he has declared. Kachur has reminded, that «such extra charge has yielded very positive result in electric power industry ».

  • Tatyana Kalinichenko: «Regional gas economy cannot plan its activity as agreements on using of gas pipelines contradict the current legislation and can be broken off at any time»

    «Operating agreements on using of gas pipelines contradict the current legislation» - Tatyana Kalinechenko, the lawyer of legal company "Olrust" has declared. As she said, «on conditions of the present contracts the last ones can be broken off at any time». Regional gas economy, having such agreements, « is not able to plan even current activity, including - repairs of gas distributive systems in necessary volumes - and as consequence, cannot provide their safe use», she considers.

    According to Kalinichenko, «today actually there is not present responsible for gas distributive system, according to current legislation requirements». The lawyer has explained, that «the owner of gas distributive systems is the state in the name of Fund of the state property, regional gas economies are their actual users on the basis of contracts on free using of the state property». As she said, «contracts have been signed within 1998 for 2001 on the basis of order of FSPU which has been abolished later behind the protest of the State Office of Public Prosecutor». At the same time, «since January, 1st, 2004 new edition of the Civil code and the Economic code of Ukraine have taken effect», Kalinichenko has explained. As she said, «for today in the current legislation are no rules of law which would allow to pass the state property to free using».

  • Sergey Dyachenko: «It is necessary to create the unique state register of pipeline transport, and also the legislation concerning conditions of its passing to concession»

    «At the present legislation passing of pipeline transport to paid using - that is rent or concession - can be used for its privatisation» - Sergey Dyachenko, the assistant to secretary of CNSDU has declared to the press-service of Kiev international energy club Q-club. According to the expert, «it is necessary to solve, who and how will incur responsibility for a condition of gas distributive systems». At the same time, «before the very close approaching to «concession» question, it is necessary to solve two key tasks - to create the corresponding legislation and the unique state register of pipeline transport» - he marks.

    Dyachenko has noticed, that «inventory of the Fund of state property and NJSC «Naftogaz of Ukraine» does not meet requirements of the decision of such difficult legal problem as passing to concession, and can be used unless for acceptance of administrative decisions». In his opinion, «the big problem is opacity of relations of the property on gas distributive enterprises». On the one hand, «owners of regional energo, owning the licence and the contract, have profitable business and monopoly position in the market», on the other hand - «because of opacity of relations of the property they quite often become victims of political pressure» - the expert has commented on a situation.

  • Sergey Nasvishyuk: «In the EU countries functions of operation, service of a gas network, and also gas transportation and sale are carried out by different legal bodies»

    «According to European experience in the EU countries the owner of a gas-transport network is not engaged in its operation, service, and also gas transportation and sale» - Sergey Nasvishyuk, the director of legal department of the Ministry of fuel and energy of Ukraine has declared to the press-service of Kiev international energy club Q-club. As he said, «in EU these functions are carried out by different legal bodies».

    At the same time, in «Ukraine regional gas economy challenges the right of a state ownership to distributive gas networks», Nasvishyuk has declared. As he said, «today through court the group of regional gas economies brings an attention to the question on granting of the termless license for using them». «If we speak about the European model, it is necessary to consider these key principles at creation of the corresponding concept - Nasvishyuk marks. - Namely - the state should create the state enterprise in which property will be gas networks». In turn, as he said, «regional gas economy will have the status of the organizations which for a corresponding payment will maintain these networks». «Separately created organizations, according to the European experience, will realize this gas on places, transferring to regional gas economy money for payment duties for gas at the population» - Nasvishyuk considers.

  • Vitaly Demyanyuk: «We are ready to the state control as we wish to pass on low-profitable, but very stable business».

    «We are ready, that we will be supervised. Because we wish to pass on low-profitable, but very stable business» - Vitaly Demyanyuk general director of "Gazex-Ukraine" declared to the press-service of Kiev international energy club Q-club. In his opinion, «transfer of gas distributive systems to concession will provide interests of the state from the point of view of the property right». «It is unconditional, requirements concerning transparency of owners of gas distributive networks can be established at carrying out of corresponding competition », - Demyanyuk considers.

    As he said, «now there are no problems from our side concerning satisfaction of requirements of the state in preservation, development and modernization of gas distributive networks». However, according to Demyanyuk, «the state should be defined, that it wants». «If it is a question about possible re-privatization then corresponding investors will behave properly. Otherwise that does not need to be pushed out silently from the market of investors» - he marks. According to general director of "Gazex-Ukraina", «the state and private owners in the gas market, first of all, needs to overcome a mutual distrust». «Level of elasticity of tariffs of regional gas economy is so low, that any abusing is not possible - he marked. - 55 % of tariff volumes are own technological expenses, 35 % - the salary is essentially underestimated, 10 % - material and other expenses». According to Demyanyuk, «as the tariff is economically unreasonable, we have corresponding problems with gas calculations». At the same time, «as soon as the tariff will be adjusted, liquidity of system will rise, and we will start to work normally» - he considers.

  • Ivan Varqa: «It is impossible to reproduce mutual relations of all subjects of the gas market with one law»

    «Today we should suggest to the government to undertake urgently working out of the concept of functioning of the gas market as one law is not enough for reproducing of mutual relations of all subjects» - Ivan Varqa, the adviser of the minister of fuel and energy of Ukraine has declared to the press-service of Kiev international energy club Q-club. He has reminded, that «on gas» field are many other players except consumers and suppliers».

    In his opinion, «reforming of the gas market should take place in two stages"."On the first - legal blanks can be filled by decrees of the President and government statutory acts that on a transition period the gas market works in a certain legal field - he has commented on a situation. - The second stage of reforms should be realized through legislative decisions of parliament». The expert has reminded, that «the fuel and energy Ministry is the subject of the legislative initiative» . «What does government want concerning gas market? », - Varqo has asked rhetorical question. In his opinion, «it is difficult to answer on this question as the government often changes». At the same time, «experts and private business also are the state part, and session of the Kiev international energy club is step to an establishment of "game rules" in the gas market »- he ascertained.

  • Mikhail Qonchar: «the rent payment for oil and gas transportation is the double taxation»

    «In Ukraine under the initiative of the present prime minister and the chairman of budgetary Committee of the Supreme Rada of that time - the rent payment for oil and gas transportation» has been considered in the budget-99 - Mikhail Qonchar, the head of energy programs of Center "NOMOS" has declared to the press-service of Kiev international energy club Q-club. In his opinion, «such step does not join to world practice at all, being, in effect, the double taxation».

    According to Qonchar, «money is actually withdrawn from a turn of gas and oil transportation companies and eaten through budgetary system». He has reminded, that «in due time still «Ukrtransnafta» repeatedly sent offers to authorities that the same budgetary law had been provided target use of a rent payment for requirements of reconstruction of gas and oil transportation systems - including, gas distributive networks». However, according to the expert, «these offers have lain down on a deep bottom in governments of «several convocations».

  • Pavel Kachur: «Gas distributive networks of Ukraine to which external interest is accurately outlined, can become an additional element of external political pressure»

    «To gas distributive networks of Ukraine and operators in the gas supply market external interest» is accurately outlined - Paul Kachur, the chief executive of the Alliance «New energy of Ukraine» has declared to the press-service of Kiev international energy club Q-club. As he said, «we cannot admit, this sector of gas supply system of the countrie to become an additional element of external political pressure». Kachur has noticed, that «he state should define certain safety locks».

    At the same time, Kachur has reminded, that «gas distributive networks is first of all technogenic object, and question ¹1 for today is safety». In his opinion, «in Ukraine Alchevsk and Dnepropetrovsk have already been forgotten partially which were the serious prevention, that it is necessary to treat responsibly to the technical condition of infrastructural objects - that is not to save on procedural works, on renewal of a technical condition, not to be engaged in populism in the tariff policy». As Kachur noticed, «the main task for warranting of safe operation of gas networks is - how to provide their modernization». «The second question is - a property question» - the expert considered. «Networks are not subject for privatization. It is correct. The state is their owner. But there is a logic question: what today makes the state as the owner to keep the property? What institutions or officials bear for it responsibility?», - the chief executive of the Alliance «New energy of Ukraine» asked a rhetorical question. In his opinion, «it is important to discuss also offers concerning a policy of the state as the owner of share holdings of regional gas economy». «It is heavy to me to understand, what purpose pursues CMU for keeping 10-20 % share holdings of regioanl gas economy - Kachur declared. - As it is not visible to this purpose even there where the state has a controlling interest». He called experts and subjects of the gas market «to make the consolidated thought, the harmonised position concerning how state policy should be on noted questions».

  • Alexander Todiychuk: «Absence of legislative «game rules» in the gas market is favourable for the separate heads of branch and government which would like to supervise over market processes in a «manual mode»

    «Since 1994 in the gas market is no appropriate legislation which defines the main «game rules». Such state of affairs, unfortunately, is favourable for the separate heads of branch and government which would like to supervise over market processes in a «manual mode» - Alexander Todiychuk, the president of «Q-club», the adviser of the minister of fuel and energy of Ukraine declared on a "round" table on June, 5th.

    As he said, «today not only countries of Eastern Europe, and even the Russian Federation has overtaken Ukraine in reforming business of gas distributive systems». «It is necessary to take advantage of the western experience of reforming of the gas market, having adapted it to internal requirements», Todiychuk marks. He considers, that «absence of legislative definition of the forms of ownership is one of the main barriers on a way of development of the gas market.

  • Ivan Diyak: «Gas distributive networks should be transferred in rent or concession»

    «As the majority of regional gas economy is already in a private property gas distributive networks which they use, should be transferred in rent or concession for the sake of an establishment of responsibility for their development and support in working order» - Ivan Diyak, the adviser of the head of NJSC «Naftogas of Ukraine» declared. As he said, «corresponding additions should be made for this purpose to the law about pipeline transport».

    In his opinion, «privatisation of regional gas economy happened chaotically». «If we privatised regional gas economy, tell, what did we privatise? - actually only buildings and autotransport as gas distributive systems remained in the state property» - Diyak declared.In this connection, as he said, «there is a question without the answer, who will bear responsibility for a condition of gas distributive networks». He has reminded, that «two laws of Ukraine forbid to privatize GTS - thus, private structures» use it. As he said, «inventory of gas distributive systems was not lead, because it is not only state, but also private - it means neutral».
    The expert has reminded, that «the gas-transport system is not eternal - it is necessary to invest means in its modernisation, construction of new branches, monitoring system creations». «If it is a matter of great volumes of transit the question of purchase of gas is solved at the state level - Diyak commented on situation.

  • Ivan Yaroviy: «All regional gas economies work at a loss even on such component, as the salary»

    «Today nobody can tell - even NCRE - that calculations of tariffs of regional gas economies are not proved. All regional gas economies work at a loss even on such component as the salary», Ivan Yarovoy, the chairman of trade union of workers of gas economy of Ukraine declared.

    As he said, «we are told about raising of the salary to workers of regional gas economy to the average on oil and gas branch"."Thus the reduction question in conformity of the price for gas which is used on the industrial-technological expenses, provided by operating tariff to the actual price of purchase of gas is not solved, to the actual price of purchase of gas - he makes comments on a situation. - Such actions will lead to only negative consequences as there will be no real money for salary payment ». He has reminded, that right after terrible technogenic accident in Dnepropetrovsk on October, 13th, 2007 «there were many conversations at all levels about necessity of the use of urgent actions for improvement of affairs in branch, in particular - support of an appropriate technical condition of gas networks, putting in an appropriate condition, completion by necessary standard number and an establishment of worthy wages to workers». Now, as he said,« three meetings with the prime minister have taken place, but performance of legal decisions of these meetings is carried out very slowly».

  • Vladimir ZARITSKY: «In the USA, at the international forums on fuel and energy complex, Ukraine is remembered less often»

    «As the participant and the organizer of the international conferences on problems of fuel and energy complex in which American senator Luqar took part, I should ascertain, that Ukraine is remembered less often» - Vladimir ZARITSKY, the American of the Ukrainian origin, the expert in fuel and energy complex sphere, founder of branch of "Q-club" in the USA declared.

    As he said, «if it was spoken about Ukraine at the previous two conferences in connection with projects «Nabucco», «the White stream» and Odessa-Brodi - that on last, mainly there was a speech about Russia with the assistance of Luqar». Influential American politicians and experts «discussed the Russian project «Southern stream», attempts of Russia to affect realisation European project «Nabucco», and also its attempt to receive additional possibilities of transportation of energy carriers through Libya and games with Norway» - ZARITSKY declared. «From this it is possible to draw only one conclusion - Ukraine should go forward not to remain behind» - he ascertained. He has reminded, that «both the EU countries, and the USA in the beginning 90th years saw Ukraine as key transit country of gas and oil, and also the supplier of an electricity in the European countries». In his opinion, «from Ukrainians and till now the leading part in these spheres is expected from Ukrainians till now». «We should answer these expectations, having strengthened the European collective safety», ZARITSKY noted.

  • Vitaly Demyanuk: «Ukraine will keep image of reliable transitor only in case of putting in order in gas distributive networks»

    «Reforms in the internal gas market is a question of the international image of Ukraine» - Vitaly Demyanuk, general director of "GaZeKs-Ukraina" declared to the press-service of the Kiev international energy club. «How do we expect to acquire glory of reliable transitor if we do not have order in gas distributive networks?», - he asked. For example, as he said, «it can not be told accurately in Ukraine, how losses which certainly influence the general balance of gas» are formed.

    Demyanuk named «an operation safety issue of gas distributive systems urgently important». On his explanations, «one of our companies - «Dniprogas» - has passed trouble which has happened last year». According to director of «GaZeKs-Ukraina», «it is necessary to enclose essential means in reconstruction of gas distributive systems of which defection degree is very considerable». «The state as soon as possible should create the reliable mechanism of attraction of investments both in state, and in branch private enterprises» - Demyanyuk noted.
    As he said, «here it is not necessary to invent a bicycle» as «we have experience of the European countries which usually give the state objects of an infrastructure to long-term concession - including, gas distributive network». As director of "GaZeKs-Ukraina" has explained, «corresponding objects remain the state property which users are obliged to support in proper condition, to modernise, involve investments». In his opinion, «the investment component certainly should be reflected in pricing». Thereupon, «it is necessary to reconsider system of tariffs» - Demyanyuk considers. Besides, as he said, «at reformin of tariffs formation model it is necessary to change model of functioning of home market of gas which is for today absolutely discrimination for the Ukrainian enterprises». «We are pressed out from liquid - in low liquid sectors of the energy market where we receive money by a residual principle» - the director of «GaZeKs-Ukraina» has explained. «Game rules which would be equal for all should be created in the country » - he ascertained.

  • Valeriy Borovik: «the System of formation of tariffs does not allow regional gas economies to receive profit»

    «Let be frank, the question number one is transparency of home market of gas» - Valery Borovik, the chairman of board of the Alliance «New energy of Ukraine» declared to the press-service of the Kiev international energy club. In his opinion, «if the chain of interests was transparent - private owners of regional gas economies, «Ukrtransgaz», NJSC «Naftogaz of Ukraine» - it would be much easier to settle relations between all players of the market - owners, the state, the consumer». At the same time, «we practically do not know, how the system of gas supply and gas transit works in the country, - neither external, nor internal - in the absence of accurate system of account and control», Borovik considers.

    In his opinion, «there is no transparency in a question of financial streams». «Today the main earnings of regional gas economies are the technological losses as the system of formation of tariffs does not allow to receive profit if in parallel you are not the owner of resources» - are considered by the chairman of board of the Alliance «New energy of Ukraine». In his opinion, «because of it there is no lack of means for reconstruction». «Money disappear behind the different schemes, is written off on technological losses, tender deliveries, etc.» - Borovik ascertains.
    «Establishment of unique game rules is possible only through the Law «About gas supply» which is clear for all participants - Borovik declared. From an alliance «New energy of Ukraine», he pledged to bring a corresponding bill which was developed by experts of the company at following session of club. «Of course, it will be not ideal, however on its basis, with the assistance of corresponding experts, complete law project can be developed which will be supported by a society and a state management »- Borovik considers.

  • Mikhail Qonchar: «It is necessary to create the normal market, instead of the pseudo-market which generates in gas sector only debts for the state»

    «Instead of the pseudo-market in gas sector of the country creation of the normal gas market» is necessary - Mikhail Qonchar, the head of energy programs of Center "Nomos" has declared to the press-service of the Kiev international energy club. As he said, «the mechanism of functioning of gas sector operating today generates only debts for the state whereas«shadow» owners pump over incomes in offshore zones». At the same time, «the new mechanism should generate necessary financial assets for renewal and lengthening of a resource of existing gas distributive networks at the expense of normal pricing» - the expert marks.

    However, as he said, «the state is the right too, urging of regional gas economies to prove requirements of increase of tariffs». That is «it is necessary to create new transparent game rules - without all attempts to reform branch are doomed to failure» - the Qonchar is assured.
    He has reminded, that «heads of the state during the international conferences and public meetings constantly face questions concerning transparency of functioning of FEC of Ukraine». According to the expert, «delay with the decision of this question leads to decrease in attractiveness of Ukraine in the opinion of foreign investors». As «the Ukrainian FEC does not become more transparent, not only western, and already eastern partners (from Kazakhstan, Azerbaijan) are interested in projects out of Ukraine, with the minimum risks», the Qonchar marks. «Where to find the fool-investor who will give the money to opaque joint-stock structure from the point of view of the property?», - the expert sneers. At the same time, as he said, «the principle - investor, give investments, and go away - continues to occur in Ukraine ». «It is not necessary to hope for success at such approach» - Qonchar is assured.
    He has reminded, that «today gas distributive networks de jure - are state ownership, and de facto - private». Qonchar considers, that «it is necessary to provide the corresponding law of peculiar «transparentization» of owners of regional gas economies, and also representations by them for the coordination with corresponding state bodies of plans concerning support of technical development and safety of operation of networks». At the same time, «it is necessary to transform of NCER to an independent regulator of the market in the spirit of the European requirements to such institution as NCER in its present status is under control of the government and its, often populist policy» - the expert marks. However, as he said, «the state is the right too, urging of regional gas economies to prove requirements of increase of tariffs». That is «it is necessary to create new transparent game rules - without all attempts to reform branch are doomed to failure» - the Qonchar is assured.
    He has reminded, that «heads of the state during the international conferences and public meetings constantly face questions concerning transparency of functioning of FEC of Ukraine». According to the expert, «delay with the decision of this question leads to decrease in attractiveness of Ukraine in the opinion of foreign investors». As «the Ukrainian FEC does not become more transparent, not only western, and already eastern partners (from Kazakhstan, Azerbaijan) are interested in projects out of Ukraine, with the minimum risks», the Qonchar marks. «Where to find the fool-investor who will give the money to opaque joint-stock structure from the point of view of the property?», - the expert sneers. At the same time, as he said, «the principle - investor, give investments, and go away - continues to occur in Ukraine ». «It is not necessary to hope for success at such approach» - Qonchar is assured.


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