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Judges’ panel considered appeals on the amount of normative losses, production and technological costs of natural gas in the gas distribution networks of privately held corporation for gas supply and gasification of all regions of Ukraine as of 2015

Judges’ panel of the Sixth Administrative Court of Appeal considered appeal of the stock companies “The operator of the gas distribution system“ Lvivgaz ”,“ The operator of the gas distribution system “Kharkivgaz” and the person who did not participate in the case, the National Energy and Utilities Regulatory Commission of Ukraine on the decision of the first instance court under date of December 18, 2019 and on the court order under date of September 25, 2015 in administrative case No. 826/15132/15.

Public joint-stock companies for gas supply and gasification of all regions of Ukraine filed a lawsuit with the Ministry of Energy and Coal Mining of Ukraine and asked the court to cancel an annex to the order of the Ministry dated March 2, 2015 No. 122 regarding the establishment of the standard losses and production and technological costs of natural gas in gas distribution networks for 2015.

Also to obligate the Ministry to approve the amount of standard losses and production and technological costs of natural gas on 2015 in the a.m. companies on the basis of the Methods for determining the specific losses and production and technological costs of natural gas during its transportation by gas distribution networks and the Methods for determining the specific losses of natural gas during its measuring by household meters if the gas volume is not brought to standard conditions.

By a decision of the first instance court dated September 25, 2015, the claim was fully satisfied.

By the decree of the first instance court dated December 18, 2019, the application of the Ministry of Energy and Coal Mining of Ukraine to change the method and procedure for the execution of the court decision and recognition of the executive letter as non-enforceable, was refused. The stock companies “The operator of the gas distribution system“ Lvivgaz ”,“ The operator of the gas distribution system “Kharkivgaz” and the person who did not participate in the case, the National Energy and Utilities Regulatory Commission of Ukraine disagreeing with these decisions, filed appeals.

On June 24, 2020, the panel of judges of the Sixth Administrative Court of Appeal reserved the decision of the first instance court dated December 18, 2019 in a part of changing a method and procedure for an execution of the court order at the initiative of the court from September 25, 2015. And the decision of the first instance court dated September 25, 2015 left unchanged.

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