The risk of tariff growth: an expert explains what determines the rate of energy price increase
17 December 19:06
Ukrainians should prepare for higher gas and electricity prices. This was stated by energy expert Oleksiy Kucherenko in a commentary to "Komersant Ukrainian".
According to him, the issue of market-based tariffs is stipulated in all memorandums with the International Monetary Fund (IMF) and other international partners, and their implementation will inevitably lead to an increase in the cost of energy.
“This has been discussed for many years. Our partners will push us, and this is spelled out in all memorandums with the IMF. They are demanding the introduction of market prices for gas and electricity, which means a price increase,” Kucherenko said.
The expert added that the speed and procedure of the tariff increase will depend on the government that will be formed after the next elections.
He emphasized that there is a division between liberals who are ready to quickly introduce market prices and other political forces that believe that tariffs should not be raised until the population’s income increases.
“This is where the watershed will be. Which governments will fall under the internationals and simply fulfill their demands, and which will resist and not rush to raise tariffs until people’s incomes increase,” Kucherenko explained.
He also linked the likelihood of a price increase to the creation of independent supervisory boards at state-owned energy companies such as Energoatom, Ukrenergo, and Centrenergo. According to him, the more such boards there are, the faster the requirements of international partners regarding market tariffs will be realized.
Kucherenko urged Ukrainians to closely monitor political decisions and elect representatives capable of protecting the interests of the population in the energy sector.
The day before, Deputy Chairman of the Verkhovna Rada Committee on Energy Andriy Zhupanin said that utility bills for Ukrainians would rise.
