The cost of heating in Ukraine: why utilities are becoming more expensive

In 2023, the calculation of the cost of centralized heating in Ukraine is carried out in accordance with Resolution 315 of the Cabinet of Ministers, the Law on Housing and Communal Services and Commercial Accounting. These documents determine the mechanism for forming tariffs for consumers using centralized heating in apartment buildings. Oleg Popenko, head of the Union of Consumers of Public Utilities, told how these tariffs are calculated, how much Ukrainians pay for heating, and why large debts accumulate.

According to Popenko, the cost of heating depends on the costs of providing the service approved by local authorities or the National Commission for the Regulation of Energy and Utilities of Ukraine. This includes the costs of heating the coolant, repairs of heating networks and employee salaries. After the costs are approved, the cost of a gigacalorie is determined, on the basis of which the final bill for consumers is formed. For those who use electric heating, the Cabinet of Ministers has introduced a preferential tariff: the first 2 thousand kilowatts of electricity consumed cost 2.64 UAH per kWh, and after that the tariff increases to 4.64 UAH per kWh.

In turn, gas heating tariffs are UAH 7.96 per cubic meter, which allows consumers to calculate for themselves how much gas is needed to heat an apartment. However, in 95% of apartments with centralized heating, it is impossible to adjust the heat supply, which creates difficulties for residents of apartment buildings. In general, the cost of 1 gigacalorie in Kyiv is UAH 1,654.71.

Popenko noted that the issue of increasing heating tariffs will depend on the political situation in Ukraine. If elections begin in the country, then tariffs will likely remain at the current level until the end of the electoral process. At the same time, according to the expert, the cost of heating in Ukraine is not yet as high as in European countries, but for many Ukrainians it remains too expensive due to the low level of income. According to the State Statistics Service, the debt of Ukrainians for utility services at the end of 2021 amounted to UAH 81.4 billion, of which UAH 29 billion is debt for heat supply.

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