The government of Ukraine may resume gradual increases in energy and utility tariffs even before the end of a full-scale war, and this process will continue after it ends. About this it is said in the updated Memorandum on Economic and Financial Policy between Ukraine and the International Monetary Fund (IMF), which was published as part of the Fifth Review of the Enhanced Financing Program (EFF).
According to the document, the government undertakes to raise tariffs taking into account the new methodology and social factors, even during wartime, if conditions permit. At the same time, it is envisaged to attract external financing and provide budgetary support to energy state enterprises if there are appropriate budgetary resources.
After the end of the war, the reform of the energy sector will involve the restoration and strengthening of competition in the gas markets, as well as a gradual increase in gas and electricity tariffs to a level that covers costs. At the same time, special attention will be paid to the protection of vulnerable sections of the population through the allocation of targeted assistance.
The Cabinet of Ministers of Ukraine must approve a roadmap for the gradual liberalization of gas and electricity tariffs with specific deadlines for its implementation for the period after the end of martial law.
By the end of October 2024, the government, with the participation of independent auditors, must analyze the debts of the district heating companies to Naftogaz of Ukraine, accumulated due to the difference in tariffs and the impact of the war. This analysis is part of the structural requirements of the cooperation program with the IMF. The decision on arrears will be made after reducing the budgetary pressure associated with the war, taking into account the new methodology for forming heating tariffs.
