Ukraine`s Prime Minister Volodymyr Groysman has called the decision on the moratorium on increasing utility tariffs, and possible compensation for differences in rates by means of local budgets, a ”dead-end”.
The decision was made by some local authorities, including those in Kyiv.
”Each of you, if possible, can use the national gas transmission system and buy gas where you think is reasonable. The current price is the price at European hubs. We buy gas and supply it in the Ukrainian market, according to the contract. After that, utility companies make their own calculations of rates for utility services,” Groysman said at a special government meeting with mayors of the country`s major cities.
”You may not table the calculations and maintain the rates you believe are necessary, and the difference in rates can be compensated from the cities` own budgets. But difficulties may arise within a few years. You would need to use funds that would otherwise be spent on modernization projects, kindergartens, schools and health care institutions. It will be your political choice, but I think it will have little chance of success,” the Prime Minister said.
As UNIAN reported earlier, on July 7, Kyiv authorities banned utility companies and their divisions to charge for utility services, according to the new higher tariffs. The decision provides for a moratorium until October 1, 2016, on the introduction of higher rates and tariffs for utility services for households. The authorities have also prohibited accruals based on the July 1 calculations, and imposition of penalties for late payments for utility services by households in Ukraine`s capital city.
Local city councils in other Ukrainian cities, such as Zhytomyr, Dnipro, Lviv and Odesa, have also announced plans to introduce the moratorium.
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