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The rise of “communal”: what will happen to the Ukrainians this fall

Подорожание "коммуналки": что ждет украинцев этой осеньюGrants this fall will be to appoint a few changed rules, gas and heating may become more expensive, the cost of electricity is stable.

Loud promotions “communal” and energy this year, the heads of state are not announced. However, the situation in this field is that can change in a matter of days. So what should be prepared – read on.

Recall that the government has already defined the new rules for calculating subsidies for communal services to the citizens of the state. More about this is described in our publication “will Take whether subsidies: who, why and what in return”.

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Gas prices: higher prices may

The Cabinet of Ministers carries out the verification of the formula of pricing of gas for the population, said Prime Minister Vladimir Groisman at the briefing in the YES. “We believe that the price of gas should be formed in accordance with the gas market and the corresponding formula. Importantly, the formula was fair,” he said and added that now experts are working to verify the formula of pricing of gas

While still in the role of speaker, Groisman said that against increase of tariffs, that did not stop him immediately after he was appointed Prime Minister twice to raise the price of gas, reminded in comments to the website “24” the head of the NGO “Social audit” Taras galaida. The Prime Minister has stated that “a monthly fee for gas” and his hand made it to the list of services to which the subsidy is calculated, which indicates the expectation of the Cabinet “license fee” in the near future. We will remind, while the fee for gas is not introduced.

But then the Prime Minister opposes raising gas prices, but he did everything to ensure that the price of gas in Ukraine increased further. According to the Decree of the Cabinet of Ministers of Ukraine from 21.02.2017 No. 90, signed by Groisman, the retail price of natural gas for residential customers is calculated on the basis of indicators of average monthly values of prices on gas on the German gas hub (NCG) including transport costs to the Western border of Ukraine and the tariff for entrance to the gas transportation system of Ukraine in the U.S. dollars at the average monthly exchange rate US dollar/Euro spot, explained].

That is, when the supply of household consumers of gas produced from the Ukrainian interior company “Ukrgazvydobuvannya” (100% owned by the state), the population will be charged for the transportation of gas from German gas hub (NCG) to the Western border of Ukraine and entrance fees to Ukrainian gas transportation system,
he said.

The Decree also obliges the Cabinet to revise the price of gas for the population twice a year on 1 October and 1 April in case of change of market prices by more than 10%. Obligations under such revision of the price specified in the latest Memorandum with the IMF.

Co-chair of the energy strategies Foundation Dmytro Marunych has said about this that earlier the Cabinet approved a new plan of the NJSC “Naftogaz of Ukraine”, which envisages the growth of tariffs for the population. But in Ukraine the government decision No. 187, which contains the order of revision of tariffs, which is pegged to import parity. According to the document, the revision rate is carried out twice a year. “If not change the wording of the decree, from 1 October we need to raise the rate at 17-19%,” – said the expert.

According to Taras Galaida, “Naftogaz” as a company, which imports gas and monitors trends in stock prices, calculated that, based on the current regulatory framework adopted by Cabinet, the price of gas necessary to raise by 18.84%.

The final price for the population in this case, including transportation, overhead is 2.5% and VAT would be 8103,0 UAH per thousand cubic meters. Moreover, it is in the case of not increasing the cost of transport, which MKREKU is reluctant to revise and improve several times,
said galaydh.

Heating and hot water: gazosilikat

In NTRAK in the forecast for the tariff changes noted that in the absence of a clear forecast on the prices (tariffs) for energy resources and foreign exchange, there is no way to predict the future level of regulation of tariffs for heat energy and services in centralized heating and supply of hot water. But also noted that the vast majority of enterprises that provide services for Central heating and hot water, as fuel use natural gas. Thus, the share of fuel costs (natural gas) in the tariff at the beginning of this year was about 83%, while the share of the cost of thermal energy in the cost structure of services in centralized heating and supply of hot water for the population, respectively, approximately 99% and 89%.

In simple terms – the rise in price of gas will automatically lead to higher prices of heating and hot water, according to estimates Taras Galaida, approx 15-20%.

Electricity tariffs: the calm

This kind of energy is held. On the NERC website the last phase of change in electricity tariffs for domestic consumers date 1 Mar 2017. We will remind, in comparison with the electricity tariff as of 1 September 2016, March 2017, it rose by 26%.

The rise in prices is not foreseen, at least in the near future.

The price of water and drainage system: no change

Cold water the last time rose in price in the early summer of this year. But more about the increase in the cost of this service has not been announced.

Garbage

From 1 January 2018 Ukraine should seriously address the waste sorting. It is defined by the norms of the Law “On waste”. Detail “trash” changes are described in the publication of “24” “the Unbearable lightness of garbage: the Rada has solved the problem of wastes in Ukraine with one amendment.”

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