The Regulator publishes the draft methodology for calculation of natural gas losses

On 23 September 2020, the National Commission for State Energy and Public Utilities Regulation (NEURC, Regulator) officially published the draft Methodology for calculation of the size of regulatory and production and technological losses/costs of natural gas in the process of natural gas distribution implementation ("Draft Methodology").

The Draft Methodology is developed in order to ensure the implementation of the functions and powers of the Regulator under current legislation, in particular the adoption of the methodology for calculation the size of regulatory and production-technological losses and costs of natural gas in the distribution of natural gas and improving existing regulations in the natural gas market.

The key task of the Draft Methodology is to fix the problem of the currently applicable methodologies, which are obsolete, and do not take into account the current state of the technology equipment. In particular, the current methodologies do not take into account the use of polyethylene pipelines, which have become widely used recently, and do not take into account all possible combinations of gas appliances, and the established normalized volumes of gas leakage from combined home pressure regulators which are not differentiated by gas pressure in distribution pipelines. The envisaged options for the availability of gas appliances for household consumers take into account only four combinations, when in practice there may be many more such combinations.

The Draft Methodology applies to economic entities that have received or intend to obtain a license to conduct business in the natural gas distribution sphere, as well as natural gas consumers which are not household.

Based on the Draft Methodology, the amounts of the regulatory and production and technological losses / costs of natural gas in gas distribution systems are calculated based on the following criterions:

  • quantitative composition and nomenclature of components of the gas distribution system that are on the balance sheet of the gas distribution system operator;
  • components in quantity of indoor gas supply systems of apartment buildings;
  • composition of household gas appliances and equipment installed at household consumers and at communal facilities;
  • data on replacement of obsolete equipment (gas pipelines) or its reconstruction, commissioning of new gas pipelines and equipment; and
  • number of meters and their metrological characteristics when measuring natural gas volumes.

The Draft Methodology takes into account the primary data from the system elements for the losses / costs of natural gas calculation. In addition, the Draft Methodology defines a list of technological operations conducted during technical inspection, maintenance, current repairs.

For further information, please contact Asters' partner Yaroslav Petrov and associate Olena Sichkovska.


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