Saturday, May 27, 2017

YekaterinburgEnergo debts result in discontinued gas supply

Uralsevergaz will discontinue its supply of natural gas to YekaterinburgEnergo's boilers after it failed to make scheduled payments for natural gas shipments.

The natural gas deliver agreement expired on July 31. The discontinuation of natural gas will mean that a great part of Yekaterinburg residents will have no hot water supply. The supply to important public buildings, however, will not stop, Ural Business Consulting reports.

At the end of the heating season in May, YekaterinburgEnergo owed Uralsevergaz $19.7 million for the gas it consumed. YekaterinburgEnergo has offered no solution to the problem. Yekaterinburg Council, the founder of the company, has also been unresponsive in finding a practical solution. On May 16, Uralsevergaz limited its gas supply to YekaterinburgEnergo's boilers.

Service was returned for the summer months after payment schedule was made through a compromise with local authorities. By July, less than 40 percent of the agreed sum was paid. As of August 1, YekaterinburgEnergo owes Uralsevergaz more than $16 million for the natural gas it has consumed, Ural Business Consulting reports.

Uralsevergaz said that because of its exhausted resources, its will only resume supplying gas to YekaterinburgEnergo after the debt has been paid off in full.