Gas and Electricity Price Increase: Expert Popenko Showed Ukraine's Obligations to the IMF.

Oleh Popenko, a housing and communal services expert, reported that Ukrainians are expected to face an increase in utility tariffs until 2025. He received this information from a letter of intent to the IMF leadership and shared it on his Telegram channel.

The document suggests that tariffs will gradually increase, both during the war and after it. This is considered as potential reform measures, taking into account the new tariff methodology and social considerations.

«Potential reform measures, once conditions allow, include additional gradual tariff increases (considering the new tariff methodology and social considerations during the war)», the document states.

The memorandum also notes the necessity of gradually increasing gas and electricity tariffs to recover costs for system resilience and reduce quasi-fiscal obligations. It is necessary to allocate resources to protect vulnerable households accordingly.

«Moreover, ensuring system resilience and reducing quasi-fiscal obligations will require a gradual increase in gas and electricity tariffs to recover costs, while allocating adequate and targeted resources to protect vulnerable households», the statement reads.

According to the document, the Cabinet will develop a roadmap for the gradual liberalization of the gas and electricity markets after martial law. This roadmap will be based on the analysis of the sector's financial condition in cooperation with the European Commission.

The memorandum with the IMF was signed by the President of Ukraine Volodymyr Zelensky, Prime Minister Denys Shmyhal, Finance Minister Serhiy Marchenko, and NBU Governor Andriy Pyshny. This document contains the obligations of the country's authorities to take certain steps.

Let us remind you that Ukrainians were explained how the subsidy for utilities is calculated during the heating season.