The government is preparing a significant increase in utility tariffs: when prices will rise

Ukrainians are worried about a possible increase in tariffs for communal services, which, according to experts, maybe 2-3 times more than the current level of payment. Government officials explain that the increase in tariffs is necessary to compensate for losses and destruction of some energy facilities and high inflation.

Read also: New consumption norms for calculation of subsidies for communal services

In 2014, Russian aggression led to a difficult and painful situation in Ukraine, which increased the difficulty of various economic issues, in particular the issue of tariffs. Since the beginning of the conflict, the priority of most Ukrainians has been the protection of the homeland and physical survival, rather than paying utility bills.

To help citizens, the Verkhovna Rada in the summer of 2021 adopted a law on a moratorium on tariff increases for natural gas distribution services, as well as for thermal energy and hot water supply services. This ban is in effect for the duration of martial law and for another six months after its lifting. In addition, other tariffs were "frozen", in particular, for electricity.

However, starting from the end of 2022, forecasts appeared in the media regarding a possible increase in tariffs for communal services. The National Commission for the Regulation of Energy and Communal Services (NKREKP) has decided to increase tariffs for water supply and drainage in 2023, which is due to the increase in the cost of materials and services in the field of water supply and drainage. However, this tariff increase should not be as high as previously predicted, and NKREKP has developed a mechanism to gradually increase tariffs over three years.

Read also: A separate category of Ukrainians can receive a 100% discount on utility bills: who does it concern

According to experts, raising utility tariffs is a necessary step in order to ensure the stability and development of the utility industry in Ukraine. However, this issue needs detailed discussion with all stakeholders, including civil society organizations, experts, and government representatives. It is important to find a balance between the needs of the industry and the ability of citizens to pay for utility services, as well as to ensure transparent and effective tariff regulation.

The Ukrainian authorities are faced with a choice regarding the issue of raising tariffs for communal services in wartime conditions. Prime Minister Denys Shmyhal announced that the discussion on this issue will begin after the end of the heating season. At the same time, he guaranteed that a "balanced social solution" would be found.

Rostyslav Shurma, Minister of Energy and Environmental Protection, noted that an option is currently being studied in which Ukrainians will pay the market price for communal services, but receive compensation from the state. At the same time, he emphasized that citizens should pay utility tariffs in full, and companies should have incentives for production development.

Therefore, the authorities are aware of the need for a balanced approach to this issue and are morally preparing society for a possible increase in utility tariffs.

We will remind you that earlier we wrote about the fact that in 2023 the rules for payment of benefits for the payment of communal services changed.

If you want to receive the latest news about the war and events in Ukraine, subscribe to our Telegram channel!