Future Increases in Utility Rates in Ukraine
The National Bank of Ukraine suggests that utility tariffs may increase in the coming years, particularly from 2026.
This information is part of the inflation report for April.
It is expected that current rates for gas, heating, and hot water will remain unchanged this year.
"However, the difficult state of the energy sector and the need for fiscal consolidation are likely to lead to gradual adjustments to these rates in the following years. Specifically, it is expected that they will be gradually brought to economically justified levels starting from 2026," the report states.
It is noted that delaying these increases will result in lower inflation but will negatively impact the financial health of state energy companies.
"At the same time, risks of instability in the energy market will grow, the investment potential of the sector will worsen, and the price pressure will only be postponed to the future," they continued at the NBU.
Conversely, a sufficiently rapid and significant increase in energy prices to eliminate imbalances in the energy sector will intensify inflationary pressure and create a need for increased subsidies for the population, the bankers believe.
As a reminder:
"Naftogaz of Ukraine" has extended the "Fixed Tariff" for gas supply to the population until April 2026.
For all residents of Ukraine, as of May 31, the electricity price has been set at 4.32 UAH/kWh regardless of consumption volume.
