Heat tariffs in Ukraine will not rise, member of the National Commission for Public Utilities Regulation Valery Kalchenko told the final conference of the U.S. Agency for International Development (USAID) project “Municipal Heating Reform in Ukraine", the National Commission press service informs.

Kalchenko recalled that the existing utility rates do not meet the economically justified level. In particular, he said, the average tariff for heat energy, paid by population, is 227 UAH / Gcal. "While economically justified level of the tariff is 312 UAH / Gcal. Thus, Ukraine's average fares cover about 70% of the cost of thermal energy. The difference is covered by the state," the official explained.

Kalchenko informed that the Commission developed and submitted for approval the Regulation on the establishment of tariffs for heat energy below economically justified levels. "The Commission will be entitled to officially calculate and secure an economically viable rate. At the same time, the size of the existing (basic) heat tariffs for the population will be confirmed. That is, the rate will not increase," he stressed.

"This procedure is only necessary for economic evaluation and compensation of the difference in fares. The amount of compensation shall be calculated as the difference between actual and economically feasible rate, multiplied by the volume of utilities, given by the companies," the official said.

Kalchenko reminded that the state budget provides 5 billion 125 million 600 thousand UAH this year for this purpose.

Representative of the National Commission for Public Utilities Regulation explained that such an approach is proposed in order to create a transparent and clear mechanism to compensate the difference in fares.


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