Heating tariffs in Ukraine to almost double from July 1

Thursday, June 9, 2016 - 16:40 (EEST) Section: Latest news

All members of the National Energy and Utilities Regulatory Commission (NEURC) have supported the decision to raise heating tariffs by almost two times from July 1, 2016.
”The average heating tariff for the population is currently set at UAH 534 per Gcal, but from July 1, it will be increased to the level of UAH 1,043 per Gcal,” said Svitlana Chornykh, the head of the relevant division at the NEURC.
Tariffs have been increased due to growth of fuel component price (UAH 474/Gcal), electricity tariffs (UAH 13/Gcal) and salaries (UAH 9/Gcal).
According to Chornykh, the adjustment in the cost of fuel component is related to the government`s decision to change the price of gas used in heat production for households. Previously, fuel accounted for 75% (UAH 400) of cost of producing 1 Gcal of heat, from July 1 the figure will reach 84% of the costs (UAH 874).
The national energy and utility regulator says that the gas price approved by the government for heating utilities at a level of UAH 4,942 per 1,000 cubic meters (excluding VAT and transportation) is the lowest on the market. According to data, over the last four months of this year industrial consumers have been buying gas at a price ranging from UAH 5,433 to UAH 6,880 per 1,000 cubic meters (excluding VAT, target surcharges and transportation fees).
As UNIAN reported earlier, the national energy and utility regulator increased central heating tariffs in Ukraine by an average of 75-90% by a corresponding decision taken at the agency`s meeting on May 5. The amount of increase will depend on a specific supplier.
The government of Ukraine on May 1 set a single price of gas for the households at UAH 6.88  per cubic meter (UAH 6.879 per 1,000 cubic meters), which is equal to the purchase price of natural gas imported to Ukraine.
As the Cabinet took its decision on the gas price on April 27, First Vice Prime Minister of Ukraine Stepan Kubiv and Minister of Energy and Coal Industry Ihor Nasalik noted that the establishment of such a price put an end to speculation on the gas market
Prime Minister Volodymyr Groysman said that this decision was not an easy one as it would spark much popular debate, but it will allow eliminating all shady schemes, which allowed making profits on a difference in the price of gas.
President of Ukraine Petro Poroshenko has called this resolution of the Cabinet a serious anti-corruption step.
As reported earlier, electricity tariffs for the households increased by 25% from March. Thus, the minimum rate for electricity for the population increased to 57 kopiykas per kW/h.
The next stage of increase in electricity tariffs for the households will begin on September 1, 2016.