###### Abstract  
In this study, we analyzed the impact of government regulatory institutions on households' natural gas use behavior and suggested that the conventional view of natural gas as a social utility is inappropriate. Pursuing this goal, we applied correlation analysis, regression analysis and the Granger causality test to assess the statistically significant impact of particular factors (environmental temperature, price and tariff on natural gas) on household gas consumption. Our study was based on the data on household gas consumption in 2019-2022. Ultimately, the lowest rate of influence was recorded by the Granger causality test (2.47%), compared to 6.88% in the test for the significance of the correlation coefficient and 9.23% in the \(t\)-test for the statistical significance of the regression coefficients. One has to note that the Granger causality test used in our study is considered the most sensitive model for analyzing economic data. Using statistical methods, we concluded that regulatory factors have a negligible impact on the volume of natural gas consumption by households. Our results suggest that the Ukrainian regulatory authorities should be cautious about using non-market mechanisms, such as price caps, in the energy sector.  
energy management; energy market; gas consumption; granger causality; natural gas +
Footnote †: journal: Medical  
In April 2024, the Government of Ukraine extended the PSO mechanism till August 2024. It fixed the price of natural gas for household consumers at UAH 7.96 per 1 cubic meter (until April 2025). The same price (UAH 7.96) was valid from May 2021 to April 2024; meanwhile, in the last three years, inflation reached 137.23% and the cost of electricity for household consumers increased by 157.14% [2; 3]. The same case can be observed within the tariff on the distribution of natural gas set by an independent regulatory authority--the National Commission for State Regulation of Energy and Public Utilities. These tariffs have not been revised for more than three years and have long been out of line with the level of expenses of gas distribution companies.  
It is important to note that these populist decisions of the Ukrainian government directly contradict the basic principles of the natural gas market, which were once laid down in the European energy legislation, which is still being implemented quite actively in Ukraine, and cause significant imbalances in the energy market, as well as require significant amounts of funding from the state budget. In particular, for 2023, according to the financial plan of Naftogaz of Ukraine, the required compensation from the state budget for implementing the PSO mechanism exceeds UAH 300 billion (equivalent to USD 7.5 billion).  
At the same time, the recently published report by the Energy Community \"Ukraine Energy Market Observatory\" was entitled \"A need for the reforms of Ukraine's gas market\"--after the previous long period of implementation of the EU legislative codes in the energy sector was finally recognized as successful only two years earlier [4].  
In particular, the Energy Community Secretariat recommends that Ukraine immediately start thinking about implementing reform processes based on the fundamental principles of the natural gas market that existed before the full-scale war on Ukraine's territory while paying due attention to protecting the most vulnerable groups of the population [5; 6].  
Thus, the following questions are rightly on the agenda today: Is the perception of natural gas as a socially critical commodity, correct? How exactly do household consumers react to changes in prices and tariffs? Is it critical enough? What is the impact of regulatory factors on households' natural gas consumption?