Date: 3 months ago   Category: Events

Increase in tariffs since November 1: gas and heating

Increase in tariffs since November 1: gas and heating
In Ukraine the gas prices for the population raise. In this regard it is expected that the payment for heat will grow by 16 percent. Since November 1 gas for the population of Ukraine will rise in price for 23,5 percent. This increase was one of the main conditions of the IMF - the main international creditor of Ukraine. It is still unknown how it will affect tariffs for hot water and heating. According to forecasts, the payment for heat will grow by 16 percent, however it grew without gas rise in price earlier. Корреспондент.net tells details. Tariffs for gas on October 19 the government has made the decision to raise in Ukraine since November 1, 2018 a tariff for gas for the population by 23,5 percent - up to 8550 hryvnias for one thousand cubic meters. The question of gas price for the population was key for renewal of financing from the IMF. After this decision the prime minister Vladimir Groysman has said, ято the IMF demanded to cancel completely power subsidies that would cause advance in price on gas for households approximately for 60 percent. However the Memorandum of cooperation between Ukraine and the IMF provides not just increase in prices for gas for the population, and their compliance to market level. The Fund is sure that different tariffs for gas for the industry and the population are a source of abuses and corruption, and the difference covering in tariffs forms the hidden budget deficit. For October 1 the minimum price of gas for the industry was 13 439 UAH for one thousand cubes. It is twice more, than at that time gas cost for the population. On October 27 the Cabinet of Ministers has published the resolution according to which gas prices for the population will grow in three stages. From May 1, 2019 to December 31, 2019 gas price for the population has to be about 9851 hryvnias for one thousand cubic meters. And since January 1, 2020 "market" gas price for the population on condition of preservation of an indicator of the base price will be established at about 12313 hryvnias. Tariffs for heating at the same time the board of directors of the IMF has said that it is ready to approve the new program of trenches for Ukraine only after final revision of tariffs for heating according to advance in price on gas. "The arrangement with experts of the IMF assumes that tariffs for heating have to be completely reconsidered taking into account increase in tariffs for gas to the approval of the new program by the Board of directors of Fund", - it is said in the preliminary prospectus of the issue of eurobonds of the Ministry of Finance. The minister of social policy Andrey Reva predicts that the payment for heat will grow by 16 percent as the price of gas is about 70 percent in tariffs for hot water and heating. At the same time, by results of the monitoring which is carried out by the National commission which is carrying out state regulation of power and utilities even without advance in price on gas in 2017-2018 local authorities raised tariffs for heat for 10-20 percent, and in some cases - and for 50 percent. In Ukraine the heating season has already begun. To two districts of Kiev have already raised the prices of heat and hot water by several percent,



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