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Gennady Temnik, Minister of Regional Development, Construction and Housing and Communal Services has denied claims that cheaper Russian gas will deprive Housing and Utilities sector of an incentive to save. Temnik says, on the contrary, they will continue working in this direction, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.
According to the Minister, the municipal thermal power system consumes over 10 billion cubic meters of gas, which thermal power companies buy from Naftogaz Ukraine for 160 USD per 1,000 cubic meters, whereas Ukraine buys gas from Russia for 286 USD per 1,000 cubic meters. The prices for materials (pipes, boilers, fuel, etc.) and the average wages in the industry are going up whereas the residential tariffs have been stable for the last 3 years. It results in a gap of 6 billion USD that the state is forced to cover.
"It's a big loss, which stimulates the industry to save considerably. The state is interested in cutting consumption of natural gas by domestic power system. We have been working on this issue for a long time, and this year we are going to introduce measures for technical re-equipment and modernization of boiler networks, allowing enterprises to reduce gas consumption of power system," Temnik said.