Naftogaz challenges Kyiv Council's decision banning disconnection of debtors from gas supply

National joint-stock company Naftogaz Ukrainy has filed a claim in court asking for the decision of Kyiv City Council, on stable supplies of energy to municipal institutions and private consumers in Kyiv who have debts for utility services and energy consumed, to be declared as illegal and invalid.

Naftogaz said in a press release that Kyiv City Council had made the decision on March 19, 2015. The holding believes that the decision is not in line with the requirements of the law on the basis of the functioning of the natural gas market and other legal acts.

Naftogaz Ukrainy Board Chairman Andriy Kobolev said that the execution of the decision by Kyiv lawmakers would have resulted in mass non-payments in the energy sector and eventually in the stoppage of energy supply, even to honest payers.

The holding said that some of the most honest payers are households, while Naftogaz Ukrainy did not receive any payment from public joint-stock company Kyivenergo for gas supplied for electricity generation.

Kyivenergo also owes debt for gas used for supplying hot water and heating. The company has a debt of UAH 3.7 billion (including UAH 2.5 billion for gas used for electricity generation and UAH 1.2 billion for gas for heating) and it is the largest debtor of Naftogaz Ukrainy.

"Naftogaz Ukrainy will achieve the revoking of the decision [of the Kyiv City Council]," Kobolev said.