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 National utilities commission approves heating, hot water rates increase

The National Energy and Utilities Regulatory Commission has agreed to almost double tariffs for thermal energy, centralized heating, and centralized hot water supply for private consumers from July 1, 2016.

This was announced at a meeting of the National Energy and Utilities Regulatory Commission, Censor.NET reports referring to Ukrinform.

"The Commission has taken a clear decision. When we received the decision of the Cabinet, we monitored prices, paying attention to the level of public income and the system of subsidies," Commission Chairman Dmytro Vovk stated.

Read more: Hot water tariff cut requires some heating facilities to use coal, not gas, - Minister Nasalyk

"The current weighted average heating tariff for private consumers is 534 hryvnia (approx. $21,35) per 1 Gcal. On July 1, the weighted average tariff will make 1,043 hryvnia (approx. $41,7) per 1 Gcal," the head of Commission's relevant department noted, according to Interfax-Ukraine.

He added the increase is due to the growing fuel cost (by 474 hryvnia/1 Gcal), electricity tariff (by 13 hryvnia/1 Gcal), and wages (9 hryvnia/1 Gcal).

According to him, the adjustment of the fuel component is due to the government's decision to change tariffs for gas used for household heating. Previously, fuel price accounted for 400 hryvnia per 1 Gcal (75 percent of the cost), while on July 1, this figure will get increased to 874 hryvnia (84 percent of the cost).

The Commission expressed confidence that the gas price for heating utilities, approved by the government at the level of 4,942 hryvnia (approx. $197,6) per 1,000 cubic meters, is the lowest in the market. A four-month analysis shows the cost of gas for industrial purposes ranges from 5,433 hryvnia to 6,880 hryvnia (approx. $217 to $275) per 1,000 cubic meters.

Read more: "We will adjust tariffs after lowering of prices on European gas market," - Hroisman

As previously reported, the increase in utility tariffs for private consumers comes as a result of growing gas cost. The new tariffs will take effect on July 1. In particular, in Kyiv, the hot water tariff will rise to 78 hryvnia (approx. $3,12) per cubic meter.
 
 
 
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