The cost of heating in Ukraine: why the communal is getting more expensive

In 2023, the cost of centralized heating in Ukraine takes place in accordance with 315 Cabinet of Ministers Resolution, the Law on Housing and Communal Services and Commercial Accounting. These documents determine the mechanism of tariff formation for consumers who use centralized heat supply in apartment buildings. Oleg Popenko, the chairman of the Utility Consumer Union, told how these tariffs are calculated, how many Ukrainians pay for heating, and why high debt accumulates.

According to Pompenko, the cost of heating depends on the costs approved by the local authorities or the NERCEP. This includes the cost of heating, repairs of heatway and wages of employees. After approval of costs, the cost of gigacalory is determined, on the basis of which the final account for consumers is formed. For those who use electric heating, the Cabinet has introduced a preferential tariff: the first 2 thousand kilowatts of consumed electricity cost UAH 2.64 per kWh, and then the tariff increases to UAH 4.64 per kWh.

In turn, gas heating tariffs are 7.96 UAH per cubic meter, which allows consumers to calculate how much gas is required to heat the apartment. However, in 95% of apartments with centralized heat supply it is impossible to adjust the heat supply, which creates difficulties for residents of apartment buildings. In total, the cost of 1 gigacalory in Kiev is 1654.71 UAH.

Popenko noted that the issue of raising tariffs for heating would depend on the political situation in Ukraine. If elections begin in the country, the tariffs will probably remain at the current level until the election process is completed. At the same time, according to the expert, the cost of heating in Ukraine is not as high as in European countries, but for many Ukrainians it remains too expensive because of low income. According to the State Statistics Committee, the debt of Ukrainians for utilities at the end of 2021 amounted to UAH 81.4 billion, of which 29 billion is the debt for heat supply.

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