District heating companies owe the national oil and gas company Naftogaz as much as UAH 95bn [about $2.6bn], Naftogaz's board chairman Oleksiy Chernyshov has said in an interview with Ukrinform.
"Unfortunately, we are already used to the fact that debts haunt the energy sector. Unsettled debts, debts created as a result of certain political decisions, uncompensated grants, subsidies, etc. I mean [debts] between companies, the government, municipalities. Unfortunately, they account for a significant part of our portfolio," Chernyshov said.
According to him, public utilities' debts to Naftogaz alone amount to UAH 95bn.
"This is a huge amount. Some of these are old debts and those that have been accumulated over the past year and a half. I would like to remind you that these are debts for gas consumed at a reduced, regulated price. This is important," he pointed out.
Nevertheless, the company is working to start the heating season on time and provide cities with gas.
"I personally work with the mayors of Ukrainian cities nearly every day to build a normal, modern, responsible system of mutual settlements for gas consumption. We must not increase our debts. Cities must pay for the resource they have consumed and pay off old debts," Chernyshov said.
As reported earlier, Chernyshov met the mayors of Lviv, Kyiv and Odesa to discuss how communities are preparing for the winter. The key issues at these meetings were the stability of gas supplies for the heating season, debt restructuring and payment for gas consumption. Such communication also helps to address other issues that large cities face ahead of the heating season.