Naftogaz suspects gas supply companies of setting gas consumption figures higher using subsidy schemes

National joint-stock company Naftogaz Ukrainy suspects gas supply companies of setting gas consumption figures almost twice higher than the figures for consumption by gas consumers who are entitled with subsidies, Naftogaz Board Chairman Andriy Kobolev has said.

"When gas supply companies issue a bill paid by the state, consumption is twice as high," the Naftogaz chief said at the Global Outlook 2018 meeting organized by the European Business Association (EBA) on Tuesday, talking about the discoveries that Naftogaz made, having gained control over one of these companies in Kropyvnytsky.

Kobolev said that he does not believe in the possibility of such a special "burning" of gas by consumers with subsidies, but suggests that, theoretically, the lack of the need to pay money for gas increases its consumption by 10-20%.

The head of Naftogaz said that out of 11 billion cubic meters of gas supplied to the households 6 billion cubic meters is sent to the consumers with subsidies, and therefore the transition to market pricing would save up to 3 billion cubic meters worth about $1 billion.

He also added that in addition to Kropyvnytsky, the company also discovered other schemes for writing off cheap gas subsidized by the state.