Expansion of Powers of Communities in Setting Tariffs for Heating Supply, Water Supply and Sanitation is Expected to Come Soon

The National Energy and Public Utilities Regulatory Commission supports the policy of decentralisation and expansion of powers of local authorities in the areas of setting tariffs for heating supply, water supply and sanitation. The respective decisions will be made by the National Energy and Public Utilities Regulatory Commission still this month. It was reported so by Dmytro Vovk, Chairman of the National Energy and Public Utilities Regulatory Commission during his speech at the Fifth Meeting of the Regional Development Council presided by President of Ukraine Petro Poroshenko. 

In particular, for the purposes of decentralisation of powers in setting tariffs, the following licensing powers of local authorities will be expanded: in the area of heat energy production, in terms of production volume - up to 170 thousand Gcal, and transportation and supply of heat energy - up to 145 thousand Gcal.

Under such conditions, 74 % of the currently operating licensees of the National Energy and Public Utilities Regulatory Commission will become subject to licensing by local authorities.

In addition, local authorities will establish tariffs in the area of water supply and sanitation in the event when:

- the overall population is up to 100 thousand;

- centralised water supply is up to 300 thousand cubic meters per year;

- centralised sanitation (sewerage system) process up to 200 thousand cubic meters per year.

Thus, 67 % of the currently operating companies in the area of water supply and sanitation as licensed by the Regulator will be supervised by local authorities.

President of Ukraine Petro Poroshenko in his comment on the speech delivered by Dmytro Vovk, supported the decentralisation of utility rate regulation and proposed to pass that resolution as soon as practicable.

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