Gas at 28 hryvnias and electricity at 13: Ukrainians have been warned about the new tariffs
This was reported by RRR4U following a public online discussion.
Ukraine must gradually bring utility tariffs in line with market levels.
This applies to gas, electricity, heating and hot water.
According to participants in the RRR4U consortium’s discussion, Ukrainians currently pay around 8 hryvnias per cubic metre for gas. At the same time, the market price of gas is almost 28 hryvnias per cubic metre.
The situation is similar with electricity. For domestic consumers, the tariff is 4.32 hryvnias per kWh, whilst the market price is close to 13 hryvnias.
Problems are also mounting in the sectors of heat supply, hot water and wastewater disposal. Due to the suppression of tariffs, companies are not receiving sufficient funds and are increasing their debts.
Andriy Gerus, Chair of the Verkhovna Rada Committee on Energy, stated that there are two possible options. The first is to gradually bring tariffs closer to an economically justified level. The second is to compensate companies for the difference from the state budget.
According to participants in the discussion, the most difficult situation has arisen in the district heating sector.
Companies receive gas from Naftogaz, but due to low tariffs, they are unable to pay for it in full. This is already leading to legal action and enforced recovery of funds.
Olena Korogod, an expert at the DiXi Group think tank, noted that following the transition to market-based tariffs, the role of subsidies and targeted assistance for the population is set to increase.
In 2024–2025, expenditure on subsidies and concessions amounted to around 36 billion hryvnias annually. Following the change in tariff policy, the need for state support may increase.
Participants in the discussion also pointed out that the transition to market-based tariffs is stipulated by Ukraine’s commitments to the IMF and under the EU’s “Ukraine Facility” programme.
As reported by ThePublic, the debts of heating and power companies to Naftogaz have risen to 150 billion hryvnias.
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