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Yatsenyuk began winter shock therapy

marunych_DDmitry Marunich, energy market expert

The National Commission for Regulation of Energy and Utilities (NEURC) has sharply increased tariffs for centralized heating services. This is already the second increase in tariffs this year, although the authorities promised to limit the increase in payment figures to only the July increase.

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As a result, the average payment level will be 10-11 UAH/sq.m. m, however, exclusively during the heating season, i.e. from November to April. Officials admit that for an average two-room “Khrushchev” apartment only the payment for heat in winter will be 500 UAH. per month. And this is only heating, without taking into account rent, payment for hot and cold water, electricity. As a result, the receipt that residents of a standard two-room apartment will receive in winter may quite realistically include a figure of about 1000 UAH.

The failed policy of the “kamikaze” government of Arseniy Yatsenyuk led to the need for shock therapy in the sphere of providing the population with housing and communal services. The current increase in tariffs will mean an increase in payments for the population of individual cities several times. Against the backdrop of rising unemployment, declining real incomes of citizens and devaluation of the national currency, such a policy amounts to real genocide against its own people.

A sharp increase in heating tariffs will be accompanied by a deterioration in the quality of services provided. Back in the summer, the government ordered a reduction in gas consumption limits for thermal power plants by 30%, which will lead to a drop in temperature in residential premises by at least 20%. The reason is a shortage of gas, provoked by the inability of the authorities to reach an agreement with Russia on unblocking its supplies in the winter of 2014-15. Negotiations are still ongoing, however, frosts will hit the territory of eastern and central Ukraine this coming weekend.

The bottom line is that the government’s “kamikaze” policy will force low-income people and pensioners to choose between paying for utilities and buying basic products. The middle class will also suffer, which instead of the promised reforms received a banal increase in prices and tariffs. The level of non-payments for utilities and energy will inevitably increase, as the authorities have tightened the procedure for issuing subsidies.

And one last thing. The current increase in heating tariffs will allow heat producers to refuse subsidies from the state budget when purchasing gas at the current price of 1309 UAH/thousand. cube m (including VAT). At the same time, the real price of this gas is 6500 UAH/thousand. cube m. Followers of Arseniy Yatsenyuk can independently calculate how much it is necessary to increase the heating tariff in order for it to become “market-based”.

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