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The Cabinet has adopted a resolution "Extension of experiment in Volyn Region on providing cash benefits for payment of electricity bills", the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.
Experts at the Ministry of Finance explain that experiment on monetization of electricity benefits was started in October 2010. As of Dec. 1, 2013, it involved almost 101,000 persons. For the experiment, the state budget appropriated 9.8 million UAH since beginning of the year to provide cash benefits for payment of electricity bills.
Experts say monetization of benefits for payment of electricity bills ensures targeting of social payments. This experiment ensures provision of cash payments to privileged categories of residents in Volyn region. It also promotes social justice and simplified procedure of granting electricity benefits.
It is particularly important that cash benefit payments form strong incentives that support rational use of energy resources. While saving the energy resources, the beneficiaries still get the full cash payment.
According to analysts, experiment implemented in Volyn region is positively perceived by residents and energy producers, as such system makes power supply relations more transparent.
To date, monetization of benefits is an important element for de-monopolization and creation of competitive conditions on the electricity and gas market. In turn, without a real competition on electricity and gas market, it is impossible to ensure the significant reduction of energy consumption and increase the efficiency of Ukrainian economy.
In evaluating the gains from monetization of benefits, experts remind that Ukraine has 141 types of benefits, where 18 million of Ukrainians are entitled to those benefits.
Thus, over 12 million people are currently entitled to free ride in urban and suburban transport.