Photo from UNIAN
The Cabinet of Ministers must submit its proposals within a month to increase the cost of paying subsidies, which are provided for in the state budget for 2021.
The Verkhovna Rada, Ukraine's parliament, has instructed the Cabinet of Ministers to study and submit proposals on amendments to legislation to complete the current heating season, which will help reduce tariffs for utility services.
Relevant decree No. 4650 "On measures aimed at social protection of the population in connection with the increase in prices (tariffs) for utility services" was backed by 337 MPs with the required minimum of 226 votes.
Head of the Verkhovna Rada Committee on Energy, Housing and Utilities Andriy Gerus said the Cabinet of Ministers must also submit its proposals within a month to increase the cost of paying subsidies, which are provided for in the state budget for 2021.
"The draft resolution proposes to the Cabinet of Ministers to consider proposals and take a number of measures for social protection of the population in connection with the increase in prices and tariffs for utilities. It is also recommended, together with the energy regulator, to study the possibility of introducing additional forms of state regulation of prices and tariffs for housing and communal services and to improve the mechanism for supporting vulnerable consumers," he said.
As stated in the draft resolution, the Cabinet, together with the National Energy and Utilities Regulatory Commission of Ukraine, has been recommended to consider the possibility of introducing state regulation of tariffs for utilities, returning a preferential tariff for the first 100 kW of consumed electricity, introducing a separate tariff for electricity for those who use it for heating.
In addition, the government should improve the subsidy mechanism in terms of the criteria for the provision and the amount of targeted assistance, as well as considering the possibility of compensating the costs of electricity to consumers who used it for heating.
Read alsoPM: Ukrainians not be fined for untimely payment of Jan gas, heating bills
Natural gas price: Recent developments
On January 1, 2021, a new price of natural gas was introduced in Ukraine; it was offered by gas suppliers as part of launching a competitive gas market.
Gas suppliers' prices for households in Ukraine in January were set between UAH 6.99 (US$0.25) and UAH 10.8 (almost US$0.40) per cubic meter, while the minimum rate was 11% up and the maximum one was 20.5% up on the December quotation.
On January 1, 2021, new tariffs for natural gas transportation were also introduced in Ukraine.
The National Energy and Utilities Regulatory Commission of Ukraine increased tariffs for 43 gas distribution companies' services by an average of 1.6 times as of January 2021.
Since the beginning of January 2021, rallies in protest against the increase in utility rates have taken place in a number of regions across Ukraine.
Responding to the mass protests, President Volodymyr Zelensky instructed the government to urgently resolve the issue of gas tariffs for the population.
On January 13, 2021, the Cabinet said it would propose setting a fixed price of natural gas for households at UAH 6.99 per cubic meter.
On January 18, 2021, the government fixed a price of natural gas at UAH 6.99 per cubic meter for households in Ukraine as of February until the end of the heating season.
In addition, Ukrainian Prime Minister Denys Shmyhal said that the NEURC should shortly make a decision on setting the ceiling gas distribution tariff at UAH 1.79 per cubic meter.
On January 19, 2021, the Cabinet published a resolution to introduce the cap price of natural gas for household consumers at UAH 6.99 per cubic meter.
On January 28, the Cabinet banned fines and penalties against Ukrainian citizens if they fail to pay in time for gas and heat supplied in January 2021.