Changing the approach to water tariff formation: what to expect in payments

Ukraine is changing the approach to setting water supply and sewerage tariffs. The innovation is included in the updated draft law approved by the Verkhovna Rada.

According to the new rules, until the end of martial law and within a year after its abolition, the right to set water supply tariffs will be transferred to local governments.

What does this mean for consumers? The change in approach still needs clarification, as local authorities will decide whether to adjust tariffs for the population or cover utility companies’ additional costs from local budgets. As a result, tariffs may differ significantly in different communities.

Previously, the National Commission for State Regulation in the Energy and Utilities Sector had control over tariff policy. After the innovations, the regulator will retain its functions of controlling and verifying the economic feasibility of calculations, but local authorities will make the final decision on tariffs.

After the law comes into force, licensed companies will have 90 days to prepare and submit updated calculations to local governments. The new documents may reflect current economic indicators, such as electricity costs, network repairs, and labor costs.

The tariff policy will remain unchanged until the review procedure is completed. Only after the analysis of the new calculations and the adoption of local decisions can the cost of services be revised.