The cost of water in Ukraine will be doubled due to the increase in the cost of the tariff components. As a result, on average, a family will pay 60 UAH more per month. And as part of the first stage of the increase in April, the price will increase by 12.3%.
How and why will the rate increase
As stated in the explanation of NEURC, on average, the expenses of a family of 2-3 people will increase by 60 UAH. “The level of tariffs at water supply and sewerage enterprises depends on the local characteristics of the production and provision of these services,” the company notes.
Thus, prices depend on the source of water supply, its remoteness from consumers, the quality of water in the water supply source, the treatment technology used, the volume of services sold, the state of fixed assets, the branching of communications, and many other factors.
“Given the experience of state regulation of the activities of licensees in this area by NEURC, it is optimal to revise tariffs once a year. NEURC is considering the possibility of a two-stage revision of tariffs for centralized water supply and centralized drainage,” the explanation says.
There are several reasons for this growth. The more water a water utility sells, the lower the tariff will be (because it distributes costs to a large number of consumers). In Kyiv, consumption decreased by 11.65%. At the same time, the costs still increased: 8.6% more you have to pay for electricity (already taking into account that with the fall in consumption, the number of kWh used also decreased). Depreciation increased by 9.03%.
Reagents have sharply risen in price (by 81.69%), and they have to spend 23.97% more on salaries. In a situation where the cost is rising, the only chance to maintain the tariff is to compensate for lower prices from the municipal or state budget. However, there is no money for this.
What else could cost more?
In Ukraine, the electricity tariff can be approximately doubled: from UAH 1.44 per kWh (with consumption up to 250 kWh per month) to UAH 2.5 per kWh. This step is necessary for repair work.
This is stated in the material GLOBAL HAPPENINGS. Yes, restoring the energy system will cost billions, without raising tariffs this money will not be found. In March, the Cabinet of Ministers’ resolution, which establishes the current tariff for electricity, expires.
Officially, the Cabinet of Ministers refuses to announce a possible recalculation of tariffs, but admits that they are considering different scenarios. According to GLOBAL HAPPENINGS, we can talk about an increase in prices for current up to about UAH 2.5 per kWh (now, if you consume up to 250 kWh per month, you have to pay UAH 1.44, and in case of consumption from 250 kWh for a month – 1.8 UAH for each kWh.
As GLOBAL HAPPENINGS wrote earlier, Ukrainians pay for gas at different rates. Most use the services of Naftogaz, but there are also several commercial suppliers of blue fuel.
Source: Obozrevatel
I am a journalist who writes about economics and business. I have worked in the news industry for over 5 years, most recently as an author at Global Happenings. My work has focused on covering the economy news, and I have written extensively on topics such as unemployment rates, housing prices, and the financial crisis. I am also an avid reader and have been known to write about books that interest me.
