You're reading: Energy regulator almost doubles heat rates for households from July

The National Commission for Energy, Housing and Utilities Services Regulation (NCER) has almost doubled heat and hot water tariffs for households from July 1, 2016.

“The current average weighed rate for heat for the population is Hr 534 per gigacalorie, the [new] average weighed rate from July 1 will be Hr 1,043 per gigacalorie [an increase by 95.3 percent],” a representative for the NCER said during debates on the issue.

He said that the increase would be due to the growth of the fuel component (by H 474 per gigacalorie), power rates (Hr 13 per gigacalorie) and wages (Hr 9 per gigacalorie).

He says that the fuel component was adjusted in connection with the government’s decision to raise tariffs on gas used to generate heat for households. If earlier fuel was priced at Hr 400 in the cost of one gigacalorie of heat (75 percent of its costs), from July 1 the amount will grow to Hr 874 (84 percent).

The NCER expressed confidence that the price of gas approved by the government for municipal heat suppliers at Hr 4,942 per 1,000 cubic meters was the lowest on the market. Data collected after four months’ monitoring shows that the industry bought gas at a price varying between Hr 5,433 and Hr 6,880 per 1,000 cubic meters.

As was reported, the commission passed a resolution to raise heat tariffs for the population from May 5. Since then the document has been debated publicly.

NCER head Dmytro Vovk said that the regulator’s decision would entail an increase in heat and hot water rates by 75-90 percent depending on rates of a particular supplier.