Groysman: decisions of local councils on a moratorium on tariff increases are invalid

Semyon Doroshenko.  
15.07.2016 16:57
  (Moscow time), Kyiv
Views: 1029
 
Housing and utilities, Local government, Society, Policy, Ukraine, Finance, Energetics


Vladimir Groysman said that any government, including the one that announced a moratorium on increasing tariffs for the population, can compensate for tariffs from its own budget or modernize the energy efficiency of its city.

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He stated this during a working trip to the Vinnytsia region.

“If any city council believes that it can compensate for this tariff, it can do so from its own budget. Due to decentralization in Ukraine, cities have 40-50% more funds than ever before. This means only one thing - they can do two things: use the mechanism of state subsidies... or take these funds, for example, Kiev has 4 billion hryvnia for development, perhaps insulating houses, helping people, modernizing boiler houses, converting them from gas to wood.... automate the control system and thus reduce your own energy consumption by 50% in three to four years,” said Groysman.

The Prime Minister also noted that the decision of city councils to impose a moratorium is invalid.

“To do this, you need to understand a little how tariffs are formed. For example, “Kievteploenergo” takes and makes its calculations and submits them to the National Commission for Energy Regulation, the commission checks and approves them. So there is no need to make any decisions from the point of view of city councils, because they do not act. As far as I understand, they decided not to increase the price of heat until October 1, but the heating season begins on October 15, and I think that this is not a completely fair position towards Ukrainians,” he added.

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