Ukraine is planning a gradual increase in tariffs for communal services at the request of the IMF

Despite the current moratorium in Ukraine on raising tariffs for gas, hot water and heating, the authorities are preparing for an increase in price adjustments for housing and communal services. These intentions are confirmed by the provisions of the memorandum with the International Monetary Fund.

The document states that potential reforms will include a gradual adjustment of tariffs according to the new methodology and social aspects, when the situation allows it.

At the same time, external financing and provision of transparent direct budgetary support to state-owned energy enterprises is envisaged until the necessary budgetary resources are obtained.

After the end of the war, the energy reform program will focus on restoring and increasing competition in the gas and electricity markets, both wholesale and retail. To ensure the stability of the sector and reduce quasi-fiscal liabilities, gas and electricity tariffs will be gradually increased to a cost-covering level. At the same time, special attention will be paid to the provision of targeted assistance to support vulnerable categories of the population.

The memorandum also provides for the development by the Cabinet of Ukraine of a roadmap for the liberalization of the gas and electricity markets within six months after the end of martial law. The document will contain an implementation plan with an indication of deadlines, based on a technical analysis of the financial state of the industry, in cooperation with the European Commission.

The updated memorandum was signed by President Volodymyr Zelenskyi, Prime Minister Denys Shmyhal, Minister of Finance Serhii Marchenko and NBU Chairman Andriy Pishnyi. The document reflects Ukraine's voluntary commitments to perform the specified steps.

Ukraine currently has a moratorium on raising tariffs for gas, hot water and heating, but this moratorium does not apply to electricity, cold water and other services.

According to the State Statistics Service, in November 2024, average prices for housing and communal services increased by 18.7% compared to the same period last year. The largest growth occurred in the electricity segment - by 63.6%.

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