Paying Off Water Bills: The Association of Ukrainian Cities Asks the President to Intervene to Prevent Water Rate Hikes
19 June 20:58
The Association of Ukrainian Cities (AUC) has appealed to the President of Ukraine to resolve the issue of the state’s multi-billion debt to local communities for keeping water rates in check, since, if the problem is not resolved, water rates will be raised. This was reported by "Komersant Ukrainian", citing the AMU.
“The Board of the Association of Ukrainian Cities calls on the Guarantor of the Constitution of Ukraine to initiate the repayment of the debt arising from the difference in tariffs, using funds from the State Budget of Ukraine, to water supply and wastewater treatment companies in order to prevent an increase in tariffs for the population. The state’s failure to compensate for losses caused by rising electricity prices, and other tariff components prevents water supply companies from fulfilling their sustainability plans and forces local governments to consider raising tariffs for the population for water supply and wastewater services,” the appeal states.
The document notes that water rates have not changed for more than four years, despite the constant rise in the cost of rate components (electricity, fuel and lubricants, reagents, equipment, spare parts, and wages). At the same time, critical infrastructure enterprises—including water supply and wastewater treatment utilities—are forced to repair damaged networks on their own and ensure energy self-sufficiency amid the unstable operation of the power grid.
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“This situation has led to a rise in arrears resulting from the difference between actual and economically justified tariffs for water supply and wastewater treatment. According to preliminary estimates, this amount currently stands at 7 billion hryvnias,” the AMU reports.
The association also notes that Law No. 4777-IX on Improving the Functioning of Energy Markets and Strengthening Energy Resilience, which took effect on March 11, transfers the authority to set water rates to local governments, but does not address the issue of compensating for the difference in rates.
“Thus, the state has shifted responsibility to local governments for the consequences of the NEURC setting economically unjustified tariffs for the relevant services. At the same time, the law does not address the issue of reimbursing the arrears resulting from the tariff difference that has accumulated due to the NEURC’s actions,” the appeal states.
If communities do not receive compensation for the tariff difference from the state budget, they will be forced to raise water rates, the appeal emphasizes.
“In order to curb the rise in tariffs for water supply and wastewater services for the population, ensure the energy sustainability of water supply and wastewater treatment enterprises, and implement local and regional sustainability plans, we appeal to you as the guarantor of the Constitution of Ukraine with a request to initiate a resolution to settle the arrears of water supply and wastewater treatment companies arising from the tariff difference using funds from the State Budget of Ukraine,” the AMU emphasizes.
As a reminder, as of the end of May, the total debt of the population for housing and utility services in Ukraine exceeded the 100-billion-hryvnia mark for the first time. This is evidenced by updated data from the State Statistics Service, which recorded the highest level of non-payments since records began.
The largest debts are for heating, hot water, and gas supply. Economists explain that the rapid growth in arrears is linked to rising rates, a decline in real incomes for some households, and the uneven recovery of economic activity. The situation is particularly dire in frontline regions: there, the population’s ability to pay remains unstable, and some people are physically unable to pay for services due to job loss or forced displacement.
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