The Association of Ukrainian Cities (АМУ) has urged the president to initiate the repayment of debts related to tariff differences for water supply and sewage services, citing the need to prevent significant price increases for consumers.
According to the association, the lack of state compensation for losses incurred due to rising electricity and operational costs is hindering water supply companies from achieving sustainability goals. This situation is forcing local authorities to consider raising tariffs for water services.
The appeal highlights that water tariffs have remained unchanged for over four years, despite continuous increases in the costs of electricity, fuel, chemicals, equipment, spare parts, and wages. Consequently, critical infrastructure entities are compelled to repair damaged networks and ensure energy self-sufficiency amidst an unstable energy system.
This ongoing issue has led to a substantial debt of approximately 7 billion UAH, stemming from the discrepancy between actual and economically justified tariffs for water supply and sewage services.
The association also pointed out that the recently enacted Law No. 4777-IX, which took effect on March 11, transfers the authority to set water tariffs to local governments. However, it does not address the compensation for tariff differences. The law effectively shifts the responsibility for the consequences of the National Commission for State Regulation of Energy and Public Utilities (НКРЕКП) setting economically unjustified tariffs onto local authorities.
Furthermore, the AМУ noted that the law does not resolve the issue of repaying the accumulated debt resulting from НКРЕКП’s actions. Without budget compensation, communities will have no choice but to independently increase water supply prices.
In light of these challenges, the Association has formally appealed to the president, emphasizing the need for intervention to resolve the tariff debt issue. They have called upon the president as the guarantor of the Constitution of Ukraine to initiate measures for repaying the debts of water supply and sewage enterprises using funds from the state budget.
This intervention is deemed essential for controlling tariff increases for the public, ensuring the energy stability of these enterprises, and fulfilling local and regional sustainability plans.
Additionally, it is noteworthy that a significant increase in water tariffs is anticipated to commence on June 1, 2026, as a result of decentralization, which has transferred tariff-setting authority from НКРЕКП to local governments in major cities.
The Association of Ukrainian Cities has called on the president to address the growing tariff debts in the water supply sector, emphasizing the need for state budget intervention to prevent price hikes for consumers. The situation has escalated due to stagnant tariffs and rising operational costs, leading to significant financial burdens on local authorities.