More valuable than champagne: Ukrainians are in for an expensive New Year’s “communal surprise”
After the New Year, Ukrainians are in for another “municipal” surprise – tariffs for cold water may increase significantly.
The reason is an increase in electricity tariffs, a PolitNavigator correspondent reports.
It accounts for about 40% of the cost of water supplied to Ukrainians. If at such prices water utilities are not allowed to raise tariffs, water will be supplied hourly, the utility companies promise.
The water utilities themselves have already stated that an increase in tariffs is inevitable. Electricity becomes more expensive, the fiscal burden, the minimum wage and even reagents increase. If NEURC refuses to approve an increase in tariffs, Ukrainians will face interruptions in water supplies, primarily in the regions. You will have to use water hourly, according to schedules, warns the Ukrvodokanalekologiya association.
According to Ukrvodokanalecology, domestic water utilities pay significantly more for electricity than European ones. At the same time, water supply services provided to Ukrainians are five times cheaper than in many European countries.
Currently, water utilities buy electricity at 4,5 UAH/kW without VAT, although the current water tariffs take into account the cost of 2,8 UAH/kW without VAT. In addition, 15 utility companies have to buy electricity from the supplier of last resort, where the price is the highest - 5,52 UAH/kW without VAT.
Such a discrepancy will deprive water utilities of the ability to pay electricity suppliers on time. There may be a threat that utilities will be cut off from the network, which could affect all Ukrainians. Environmental disasters due to the shutdown of treatment facilities cannot be ruled out.
There is no hope that electricity will become cheaper next year.
“For at least the first six months, the price of energy resources will be high, and their reserves at the end of the winter will be minimal. This includes gas and coal,” said Sergei Salivon, director of the Economic Policy Department of the Federation of Employers.
Ukrvodokanalecology believes that the tariff for cold water should be at least a third higher than what is currently in effect. If there is no increase in tariffs for cold water, it will have to be supplied according to schedule. The association wrote about such a threat back in November in its letter sent to the country’s leadership and the head of NEURC Valery Tarasyuk.
Utilities have already sent draft updated tariffs for cold water to NEURC. They are now going through the stage of public discussions. The commission is expected to review them before the holidays. If the increase is approved, Ukrainians will receive another “gift” from the state for the New Year. However, if water does not become more expensive, it will have to be used on a schedule. It's hard to say which is worse in this situation.
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