New ban on communal enterprises: why tariffs may rise sharply.

According to inkorr.com: The head of the Union of Consumers of Communal Services Oleg Popenko shared important information about changes in Ukraine. As reported by 'Khvylia', a new law that came into force on August 28 prohibits the creation of new communal and state enterprises. All existing enterprises must be re-registered as Limited Liability Companies (LLC) within three years.

Opposition to innovations

“This is complete farce. Communal enterprises exist in Germany, Poland, the USA - in most countries of the world. A communal enterprise is one where the local government bodies are the owners,” explained Popenko.

Popenko noted that these changes could lead to enrichment of elites and an increase in corruption. He warns that during the re-registration process, offshore companies could become the owners of enterprises, posing a threat to economic stability.

Risks for the population and communal services

Experts are confident that the transition to private ownership may cause significant increases in communal tariffs. The most affected will be small settlements where communal enterprises perform critically important social functions. The new scheme could also lead to losses in urban departments, increased tariffs, and problems in managing the new system.

Therefore, the transition of state and communal ownership in Ukraine to private structures may create new challenges for managing and the quality of communal services in the future. This especially concerns the rise in communal tariffs, which may seriously impact the budgets of residents of small settlements.