The Verkhovna Rada has announced a possible electricity rate of up to 13 hryvnias
As of May 18, Ukraine is discussing a gradual transition to market-based pricing for gas, electricity, heating, and hot water. Parliamentary officials note that the estimated cost of electricity could reach approximately 13 hryvnias per kWh as part of the country’s efforts to fulfill its obligations under cooperation programs with the IMF and the EU Ukraine Facility.
This was discussed during a public online discussion organized by the RRR4U consortium.
Currently, the gap between current tariffs for households and the market cost of energy resources remains significant. For instance, residential consumers pay about 8 hryvnias per cubic meter for gas, while the market price is approaching 28 hryvnias. The situation is similar with electricity: the current tariff is 4.32 hryvnias per kWh, while the market cost is about 13 hryvnias. In fact, current prices cover only one-third of the actual cost.
A similar situation persists in the sectors of heating, hot water supply, and wastewater disposal.
Andriy Gerus, chairman of the parliamentary Committee on Energy, stated that the state has only two options: either gradually bring tariffs closer to an economically justified level, or continue to keep them artificially low, compensating the difference to utility companies at the expense of the budget. Otherwise, the sector will continue to accumulate debt.
The situation remains particularly difficult for district heating companies. They purchase gas from Naftogaz, but due to underpriced tariffs, they cannot fully pay for the supplies. This leads to legal disputes, forced collection of funds, and creates risks for preparations for the heating season.
Experts note that the transition to market-based tariffs will inevitably increase the financial burden on the population. Therefore, at the same time, the state will have to expand the system of targeted assistance for families who will not be able to pay for utilities on their own.
According to participants in the discussion, in 2024–2025, the state’s spending on subsidies and benefits amounted to approximately 36 billion hryvnias annually, even under the current tariff cap mechanism. After the transition to market prices, the need for social support may increase.
At the same time, European practice shows that market-based rates can be combined with social protection for the population; however, assistance must be targeted and provided only to those citizens who truly need it.
We previously reported that the NEURC updated gas bills for residential consumers.
Here’s a reminder of who will receive state assistance and how.
Also, over a million Ukrainians have applied for Winter Support.
