The experts substantiated the necessity of increase of tariffs for water

Ukrainians living in homes with centralized water, waiting for the next unpleasant surprise: the tariff for cold water will be significantly increased.

Эксперты обосновали необходимость повышения тарифов на воду

As reported finance.ua such decision was made by the national Commission for regulation of electricity and utilities (NKREKU).

Appreciate water needs until January 2021, but actively talking about it now.

Despite the argument of the national Commission and the utilities, the increased cost is economically justified, economists and experts in the housing sector agree with them only partially.

So the Executive Director of the Association of managers of apartment buildings Andrei Nikonchuk said that now tariffs for utilities, including cold water, rising with surprising regularity, and NKREKU “stamp” their approval according to the application service providers.

“So it will be as long as NKREKU or someone else will develop or adopt a formula for automatic indexation based on, for example, increase the minimum wage and other objective factors. This formula should include two components. The first component is indicative, it includes objective indicators: the increase in wages, the rise in prices of energy, consumables for repair and modernization”, — said Nikonchuk.

The second component, according to experts, is responsiveness to local conditions in the definition of “hotelok” service providers. He explained that in some regions the price of water supply affects the location of the transfer stations. A reasonable increase of water tariff, in the opinion of Niconchuk is the need to supply water for tens of kilometers, or if there are other reasons affecting the cost of utilities.

I agree with Nikonusa and former housing Minister, and now MP Oleksiy Kucherenko. In his opinion, now NKREKU not so important as before, controls the calculations that are submitted by the utilities for approval.

“There is no state control over monopolies. For example, I have studied the economic justification of several utilities through which cold water must go up. The causes are the same: the growth of staff salaries, chemical reagents, in one case, they allegedly went up by 180% and so on. Never laid a significant increase in the investment component, i.e. the costs of replacing old pipes, purchase and installation of more efficient pumps in the future may reduce water loss, reduce energy consumption. Then rates will not increase. That is, confesses the principle: take advantage of the situation to get bigger and eat away. Note: the growth rates accelerated in the last 5-6 years”, — said Kucherenko.