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The aim of the assignment is to provide information on specific aspects related to the supply of natural gas to households in gas retail markets of a number of selected EU countries, so as to assist the ESP Project in identifying practices and reform areas applicable to the Ukrainian gas sector context. The survey focuses on how the retail gas market evolved, the rights and obligations of suppliers and consumers for switching, the settlement of imbalances and the role of the supplier of last resort.

This is a pilot project involving advisory services to a gas distribution company in Southern Ukraine for the identification and financial/economic evaluation of investments (decommissioning, replacement, rehabilitation, expansion projects) necessary for the optimization and development of its network. The project includes analysis of the DSO’s asset register and development plans, conducting a gas leakage verification survey, and assessment of the drivers of technological gas changes. The project aims to propose additions in the DSO’s network development plan, to enhance its effectiveness and bankability.

The main objective of the assignment is to formulate a methodological approach for Ukraine that improves and enhances the approach currently used, and also describes the analysis that could be applied in the future following changes in the regulatory and legal framework. The support included training in project financial and cost-benefit analysis using case studies of gas distribution infrastructure replacement projects

VIS implemented a study, commissioned by gas sector stakeholders in Ukraine, involving a review and comparison of current and planned gas distribution tariff methodologies in Ukraine with those in EU, and a comparative analysis of the operational and financial efficiency of Ukrainian distribution companies with EU DSOs.