The Association of Ukrainian Cities calls on the President to initiate repayment of state debt to water supply and wastewater enterprises
The Association of Ukrainian Cities has appealed to the president to resolve the problem of the state’s multi-billion-ruble debt to enterprises, which arose due to the containment of water supply tariffs. The AMU warns that if the issue is not resolved, water tariffs will have to be increased.
“The Board of the Association of Ukrainian Cities calls on the Guarantor of the Constitution of Ukraine to initiate repayment of the debt from the difference in tariffs at the expense of the State Budget of Ukraine to water supply and wastewater enterprises in order to prevent the increase in tariffs for the population. The lack of compensation by the state for losses due to the increase in electricity prices and other components of tariffs prevents water supply enterprises from implementing sustainability plans and forces local governments to consider a decision to raise tariffs for the population for water supply and wastewater services”, states in an appeal published on the AMU website.
The appeal emphasizes that water tariffs have remained unchanged for more than four years, although the costs they consist of are constantly growing. This includes, in particular, electricity, fuels and lubricants, reagents, equipment, spare parts and labor. At the same time, critical infrastructure enterprises, including water utilities, are forced to independently restore damaged networks and ensure energy self-sufficiency in conditions of unstable operation of the energy system.
This is due to the increasing debt, which arose as the difference between the actual and economically justified tariffs for water supply and wastewater. According to preliminary estimates by the AMU, it currently amounts to UAH 7 billion.
The association also recalled that the Law on Improving the Functioning of Energy Markets and Strengthening Energy Sustainability No. 4777-IX, which entered into force on March 11, transfers the right to set water tariffs to local governments. At the same time, this law does not resolve the issue of compensating for the difference in tariffs.
“Thus, the state shifted responsibility to local governments for the consequences of the establishment by the National Commission for the Regulation of Energy and Utilities of Ukraine on Economically Unjustified Tariffs for the relevant services. At the same time, the Law does not regulate the issue of reimbursement of debts from the difference in tariffs that accumulated as a result of the actions of the National Commission for the Regulation of Energy and Utilities of Ukraine”, – the appeal emphasizes.
The AMU emphasizes that without compensation for the difference in tariffs from the state budget, communities will be forced to increase water tariffs.
“In order to curb the growth of tariffs for the population for water supply and wastewater services, ensure the energy sustainability of water supply and wastewater enterprises, and implement local and regional sustainability plans, we appeal to you as the guarantor of compliance with the Constitution of Ukraine with a request to initiate a resolution of the issue of repayment of debts of water supply and wastewater enterprises from the difference in tariffs at the expense of the State Budget of Ukraine”, – the AMU notes.
