Ukrainians are being prepared for new utility tariffs

13 November 2012 10:35  5024341 024886
Ukrainians are being prepared for new utility tariffs

National commission, which regulates the cost of utility services in the country, offers a new methodology for tariff calculation.

The main argument of the commission is that the poor quality of services if far from their high cost.

The transition to the new system should be done in two phases of increasing the cost of services, and after 5 years the price will begin to decline.

"The first benefit is guaranteed. The company reduces costs. The second - if the company reduces faster, half of this economy remains with consumer. This model is based on the fact that the tariff will decrease," - said the director of the Department of development in the utilities sector of the National Commission Dmytro Arlachov.

The idea is supported by Kyiv utility companies, and they offer to start by raising rates.

"We need to raise tariffs to the cost level. This can be interpreted as politically incorrect statement, but it's true. In Kyiv tariffs cover 60% of the cost. This leads to the equipment wear and breakdown," - said the first deputy general director of "Kyivvodokanal" Hanna Tsyhanok.

Former minister Oleksiy Kucherenko does not believe in the good intentions behind the reform.

He suspects that with this PR campaign they just prepare Ukrainians for banal rising of communal services after the election.

"This year, 16 billion have been provided for the repayment of utility companies losses at the expense of the budget. Neither the IMF nor the economic situation will allow to do it anymore, so the government will raise rates", - says ex-official.

Ukrainska pravda

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