Reduced consumption rates will affect low-income population

More than 73 thousand consumers of gas in Ukraine, who enjoy benefits, will be compensated the cost of gas within the new rates reduced by 1.5-2 times.

October 1, 2014, the Resolution of the CMU №409 came into force, according to which the state has reduced gas consumption rates. As a result of the adoption of this legal act, socially vulnerable consumers will pay more for gas, which in turn will cause the increase of debts for gas.

Thus, according to the resolution, when calculating compensation and preferential subsidies in case of using natural gas for heating, the social rate will be 7 cubic meters of natural gas per 1 square meter of heated area per month during the heating season, instead of 11 cubic meters. That means that state will compensate the low-income population the cost of gas only within the newly adopted rates, the rest they will have to pay at full price, which has significantly increased since May 1, 2014

For consumers who live in apartment buildings and have individual heating, the so-called adjustment coefficient has been established. This coefficient is used to calculate the rate of gas consumption for heating by recipients of subsidies and benefits. Coefficients depend on the type of property – private house or multi-storey building – and the region. The adjustment coefficient for Transcarpathian region is 0, 83 for private homes and 0 422 for multi-storey buildings.

For example, previously, the preferential heating rate for a child of war – a resident of a multistory building was 370.1 cubic meters and a consumer received 25% off the cost of gas – 100.76 UAH. Now, under the new rates, the preferential rate is equal to 111.05 cubic meters of gas and the compensation will be only 30.23 UAH. The consumer will have to pay the rest 75% of the gas consumed within the rate and 100% of the gas consumed in excess of the rate.

Reducing gas consumption rates, the government punished the poorest citizens, because for some categories of beneficiaries, volumes of preferential gas for heating will be reduced by 1.5 or even 2 times.

The new Resolution carries significant risks and may result in deterioration of payments and debt accumulation and the emergence of social tension. The increase in the cost of gas and reducing of compensation of its cost for consumers will lead to an increase in debt for gas.