Housing and utilities tariffs: what changes await Ukrainians after the new reform

It is expected that the new reform in the housing and communal services sector will negatively affect the financial situation of Ukrainians. Expert Valeriy Matkovsky explained the main reasons for the increase in tariffs.

Unnoticed by many, the Verkhovna Rada adopted Law No. 6013 “On the Features of Regulation of Entrepreneurial Activities of Certain Types of Legal Entities and Their Associations in the Transitional Period”. Although this decision passed without significant resonance, its consequences may concern every Ukrainian, as it provides for changes in the housing and communal services sector.

With the new norms, existing communal enterprises must transform into business associations within 5 to 7 years. Management of heating networks is gradually transferred to private operators, and the creation of new communal enterprises will become practically impossible. This leads to a shift of responsibility from local authorities to the private sector.

Impact on consumer bills

Valeriy Matkovsky, an expert in the housing and communal services sector, emphasized that tariffs and the quality of services remain primarily crucial to citizens. However, control over these aspects is no longer in the hands of local authorities. The state, which previously partially compensated for the difference in tariffs, will not be able to do so in the future.

“Of course, the cost of services will increase. Previously, the state compensated for tariff differences, including to private enterprises. Now the state does not have the resources for this, and in the near future it will not,” the specialist noted.

Another problem is the critical condition of heating networks, the modernization of which will require billions of dollars in investments. Private operators will probably not invest without increasing tariffs for the population.

Matkovsky emphasizes that the state is actually trying to shift responsibility for the increase in prices to the private sector, stating that this is the initiative of private companies, not the authorities.

It was previously reported that debtors for utility services may be fined, as well as a possible increase in gas prices this fall, which will also have an impact on family budgets.