Utility tariffs: what will change in Ukraine in 2024

In Ukraine, the National Bank forecasts that the moratorium on raising utility tariffs, including gas for heating, will remain unchanged in 2024. The opposite trend is expected in the electricity sector, where prices are expected to rise.

In an interview, NBU Governor Andriy Pyshnyi explained that rising utility prices are a factor contributing to the expected acceleration of inflation in 2024, which the NBU estimates will reach about 9.8%.

According to a decision of the Cabinet of Ministers of Ukraine dated January 9, the ban on the termination of housing and utility services and the charging of penalties and collection of utility arrears in case of non-payment was lifted. However, the moratorium will remain in place in the frontline areas and in areas with active hostilities.

Kostyantyn Ushchapovskyi, Head of the National Commission, explained that the reason for lifting the moratorium is the growth of debts for utilities, which make up a significant part of the market structure.

The lifting of the moratorium may create new challenges for the electricity market. Experts doubt the effectiveness of this step in solving the problem of multibillion-dollar debts in the electricity market, where the key debtors are large energy companies rather than household consumers.

The recent increase in household debts for electricity has caused concern. However, experts emphasize that this share of total debts in the energy market is insignificant compared to the debts of large companies and industrial consumers.

The lifting of the moratorium, according to experts, may not significantly affect critical infrastructure facilities, such as hospitals or water utilities, as guaranteed electricity supply for such consumers is regulated by other government regulations that are still in force.