Photo from UNIAN
Ukraine's Prime Minister Volodymyr Groysman says it is the local authorities who form the structure of utility tariffs in Ukraine and then submit them to the National Energy and Utility Regulations Commission for review and approval, according to the government press service.
The prime minister emphasized that it is the local authorities, not the government, who bear responsibility for the level and the final cost of utility services in the regions.
"The Ukrainian government does not set tariffs for heat and hot water. The local authorities form the relevant presentation, while an independent regulator, non-related to the government, approves it. But the submission is drafted by a council of each Ukrainian city where heat is generated, not the independent commission. They [city councils] make their calculations, submit them to the Commission and request that they are verified. Therefore, local authorities in Ukraine influence the formation of costs for heat, cold and hot water supplies, which is approved by NEURC," the prime minister said.
Read alsoEnergy sector to be plugged in reformGroysman also noted that the Cabinet of Ministers established a single market price for gas, which put an end to speculation, corruption and kickbacks from fuel sales. "Earlier, it was a source of making money, while Naftogaz [the state-run energy holding Naftogaz of Ukraine] was a loss-making company," Groysman said, recalling that Naftogaz made a profit in late 2016.
Read alsoCabinet not yet to introduce state of emergency in energy sector; anti-crisis measures launchedAs UNIAN reported earlier, the payments of households for central heating and hot water accounted for almost 93% in 2016, while payments of budgetary institutions and the industry reached 100% in 2016, according to the National Commission for state regulation in the energy and utilities.