In August 2020, the public service obligation (PSO) mechanism for households in Ukraine was lifted. The PSO formally obliged state-owned Naftogaz company to sell the necessary amounts of domestically produced gas by Naftogaz subsidiary producers (Ukrgazvydobuvannia (UGV) and Chornomornaftogaz (CNG)) under regulated prices to the designated regional retail suppliers that supplied households. Another important aspect of the PSO mechanism was the regulated supply of domestically produced gas for district heating companies. The PSO for district heating companies is still in effect, however there are plans lift the PSO in May 2021.
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