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Gas and electricity tariffs for households in Ukraine are set to rise from 2027 – a memorandum with the IMF

Gas and electricity tariffs for households in Ukraine are set to rise from 2027 – a memorandum with the IMF

22 July 2026, 18:01

Gas and electricity tariffs for households in Ukraine are set to rise from 2027 – a memorandum with the IMF — However, no final decision has yet been taken – the document itself does not imply an automatic increase in tariffs

Ukraine may begin a gradual increase in gas and electricity tariffs for households as early as 2027. This scenario is set out in the updated Memorandum on Economic and Financial Policies, which the Ukrainian authorities have agreed with the IMF. However, no final decision has yet been made – the document itself does not imply an automatic increase in tariffs.

This is stated in a document that has been made public, as reported by Interfax-Ukraine.

It is emphasised that tariff increases should only take place once the state has assessed the effectiveness of social support and, where necessary, strengthened protection for the most vulnerable households.

According to the memorandum, the Ukrainian authorities must carry out an assessment of utility bill compensation schemes by the end of February 2027. Only then can the gradual adjustment of tariffs to an economically justified level begin.

The document explains why there is a desire to review tariffs. The authors of the memorandum believe that the current system is hindering the recovery of the energy sector following Russian attacks.

They emphasise that tariffs for households currently stand at only around 55 per cent of market levels. As a result, state-owned energy companies are forced to cover the shortfall at their own expense, accumulate debt and become increasingly dependent on international aid.

According to experts’ estimates, the policy of frozen tariffs costs the state approximately 2.2 per cent of GDP each year in the form of hidden subsidies, whilst targeted assistance to low-income households amounts to only around 0.6 per cent of GDP.

The memorandum also cites the example of Naftogaz, whose debt rose by 63 per cent in 2025 due to the need to finance repairs to damaged infrastructure and the purchase of imported gas.

However, no final decision has yet been taken – the document itself does not imply an automatic increase in tariffs.

The intention is to launch the reform no earlier than 2027 and only once mechanisms have been put in place to protect those citizens who will be hardest hit by rising utility costs.

In the long term, the authorities plan to gradually phase out fixed tariffs so that gas and electricity prices are determined by market forces. According to the authors of the memorandum, this is necessary to attract investment into the reconstruction of Ukraine’s energy sector after the war.

As a reminder, it was previously reported that water tariffs in Kyiv could be increased by almost three times.

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