Naftogaz Bids for Supplier of Last Resort Role

Ukraine state monopoly Naftogaz is taking part in a competition to be the supplier of last resort, it said July 9. “Naftogaz is prepared to help the successful launch of the residential gas market,” it said. The equivalent role, the public service obligation, was cancelled at the start of July.

"Naftogaz has always taken the reform of the gas market responsibly and believes a supplier of last resort is  one of the essential provisions for the safe launch of the household gas market,” it said.

It has filed the necessary documents to take part; and as it has played that role historically its suitability for the role is not likely to be questioned.

"We are ready to use the maximum of our resources to guarantee that not a single gas consumer remains without gas in the event of force majeure circumstances,” said CEO Andriy Kobolev. In its tender document the company stressed its experience as a direct supplier of gas to consumers and said it has everything in place for this.

It did not say what force majeure circumstances might be, but bankruptcy has been a common problem facing new entrants in other competitive household gas markets, such as the UK.