On August 31, 2022, the Director of Energy and Infrastructure Programmes of Razumkov Centre Volodymyr Omelchenko took part in a meeting of the Temporary Special Commission for Preliminary Consideration of Issues Regarding Violations of Legislation, Which Led to Crisis Phenomena in the Energy Market of Ukraine Before and During the Armed Aggression of the Russian Federation Against Ukraine (TSC). The Commission was set up by the Verkhovna Rada of Ukraine Resolution No. 7594.
The meeting was attended by people's deputies — TSC members; representatives of the National Security Council, NERC and the Ministry of Energy; Chairman of the Board of Naftogaz of Ukraine Yu. Vitrenko; Director General of the Gas Transmission System Operator of Ukraine LLC S. Makohon; members of the Supervisory Board of Main Gas Pipelines of Ukraine JSC, a representative of RGC LLC, representatives of branch associations, etc. — about 20 participants in total. The meeting was chaired by a People's Deputy of Ukraine O. Kucherenko (TSC Chairman).
At the TSC meeting V. Omelchenko, in particular, emphasised the need to urgently resolve the management and financial crisis before the heating season, which will take place in the conditions of the Russian aggression. He also made some suggestions on the TSC priorities and improvement of the financial situation in the GTS Operator of Ukraine LLC. The Director of Energy and Infrastructure Programmes of Razumkov Centre also proposed some organisational solutions for the TSC work.
TSC took the following decision:
1. To take into account the information of the Supervisory Board and management of Main Gas Pipelines JSC regarding the critical financial condition of the GTS Operator of Ukraine LLC, non-implementation of the GTS Operator Investment Programme for 2020 and 2021, signs of manipulation of the information platform data regarding imbalances, non-implementation of decisions of the Main Gas Pipelines JSC Supervisory Board by the GTS Operator of Ukraine LLC CEO, and the Supervisory Board proposal to dismiss S.L. Makohon from the position of the GTS Operator of Ukraine LLC CEO;
2. To contact the Cabinet of Ministers of Ukraine in connection with the grounds identified by the TSC for urgent organisational and administrative action to restore manageability of the GTS Operator of Ukraine LLC;
3. To contact the Cabinet of Ministers of Ukraine in connection with the grounds identified by TSC for the a decision to terminate the agreement between the GTS Operator of Ukraine LLC and Ukrtransgaz JSC (Naftogaz) on reimbursement of the necessary income adjustment;
4. To contact:
- NERC on issues of compliance of the GTS Operator of Ukraine LLC with licence terms and conditions and requirements of regulatory legal acts;
- the State Audit Service of Ukraine regarding the need to urgently check, within the limits of its power, the GTS Operator of Ukraine LLC operation, in particular, the existing risks of emergence of a liquidity gap, and to provide an assessment of the GTS Operator solvency.
5. To investigate in more detail the problem issues of the GTS Operator of Ukraine LLC operation, regarding:
- its real financial status;
- reliability of reporting;
- preservation of financial stability;
- technical condition of Ukraine’s gas transportation system and its operation modes;
- rate setting;
- identification of assets and compliance with their regulatory framework;
- ability to invest in critical gas transport infrastructure in response to structural challenges;
- threats to short-term liquidity and medium-term viability of the GTS Operator, as the basis of the state's energy security.
6. To set up separate working groups employing external specialists for a more detailed study and resolution of the main problem issues of the GTS Operator.
7. The results of the performed research should be taken into account when developing amendments to the legislation on overcoming crisis phenomena in the natural gas market and ensuring energy security of the state during the period of martial law in Ukraine and its subsequent recovery.
