Ukraine is maintaining a moratorium on utility rate increases
The government has stated that, during martial law, increases in utility rates in Ukraine are being deliberately held back, and that this decision is not only economic but also political in nature. The authorities acknowledge the problems in the sector but are keeping prices for the public unchanged for now so as not to increase the financial burden on citizens.
Deputy Prime Minister for Ukraine’s Recovery and Minister of Community and Territorial Development Oleksiy Kuleba stated that the issue of utility rates is effectively a political decision today, as the state has taken on the responsibility during the war to curb the rise in the cost of living for the population. According to him, despite the difficult economic situation in the energy and utilities sectors, the government will not allow a sharp increase in people’s bills.
“In fact, decisions on utility rates are political right now. We are not shying away from this. However, we recognize that during martial law, the state must curb tariff pressure on citizens,” Kuleba said, explaining the government’s approach to tariff policy amid the war and ongoing shelling of infrastructure.
The ministry acknowledges that the current rates charged by heating and utility companies and water utilities do not reflect the actual cost of services, which is why the sector is accumulating significant debts for energy resources, particularly gas and electricity. At the same time, the government emphasizes that the issue of revising prices is being postponed until the end of the war, when economic conditions will allow for a transition to a more market-oriented model.
“After the war ends, after victory, we must prepare to review our approaches and decisions. But we must maintain requirements to protect socially vulnerable segments of the population,” the Deputy Prime Minister noted.
Currently, the Cabinet of Ministers, together with the Ministry of Finance and members of parliament, is working on mechanisms to stabilize the system, specifically considering the possibility of including in the 2027 budget a special program to repay the debt arising from the tariff differential, which is estimated to amount to approximately 122 billion hryvnias. The government emphasizes that the goal is to strike a balance between the sector’s financial stability and protecting households from an additional burden. This was stated in an interview with “Ukrinform.”
On July 8, the Committee of Permanent Representatives of the EU (Coreper) will consider the approval of the screening results for Cluster 6, “External Relations,” in the negotiations on Ukraine’s accession to the European Union.
