New high tariffs for heat will teach Ukrainians energy efficiency


Dmytro Grigoriev, Serhiy Leyvikov, Andrii Duda

Odesa, March 25, 2015 – Dmytro Grigoriev, an analyst at the “Center for Energy» (EIRCenter), corresponding member of the Engineering Academy of Ukraine, was a member of the National Commission regulation of the utilities; Serhiy Leyvikov, director KP “Odesa Regional Energy Saving Company”; Andrii Duda, chairman of the condominium “Poseidon”, a board member of the Association “Odesa Housing Alliance”, an expert consultant on the condominium / HBC, held a briefing on “Charging of housing services: arguments, perspectives, ways to optimize energy consumption”.

Dmytro Grigoriev said that the issue of tariffs is now the second most relevance in our country after the war. We are going through a difficult time when the government is pursuing a policy of bringing utility tariffs to economic levels.

Now National Commission for regulation in the field of energy and utility services engages in the basic rate in the housing sector has been the. Most tariffs have increased, except for water tariff. But, most likely, the Commission will consider tomorrow tariffs for water supply and sanitation.

Serhiy Leyvikov said that, unfortunately, only the high rates may encourage people to think about energy efficiency. The task of society and the state – more strictly control of utility providers. It is important that the increase in tariffs led to the emergence of the market of public services and rehabilitation. It is necessary that there was competition among service providers.

Raise of tariffs to their real value – a good thing that many healthier economic processes in the country. But it is necessary to pay attention to those, who cannot pay the new accounts, so that they can receive timely breaks and subsidies. Due to this increase in tariffs will not be critical phenomenon. We must invest more money in infrastructure to reduce costs for transport of heat, it is necessary to introduce competing management companies that eliminated the need for FSW, and instead come tens and hundreds of entrepreneurs, who will provide quality services.

In the cities, hundreds of boilers that should become competitors for the heat supply to the population. Raise of tariffs will give private business the opportunity to draw attention to the housing sector to provide services in it.

Now people need to stop thinking like an individual apartment owners, and see themselves as part of a community of owners. This will provide an opportunity to reduce costs together. In service areas there should be no monopolies. Utilities must be, as clumsy, forced out of the scope of these small private firms.

There are two work programs for the implementation of energy efficiency. It concerns the owners of small housing, and from April will start the program to compensate for part of the work during the thermal rehabilitation multi-store buildings. This will bring up comfortable living conditions of residents and at the same time reduce the cost of heating. But here we must convince all the tenants to agree to fund part of the work.

Dmytro Grigoriev noted that there are natural monopolies, from which is impossible to get rid of. This is when customer satisfaction is most effective in the absence of competition. E.g. supply of water. Here, no one is going to hold a competition. But monopolies should be regulated by the state.

Formerly, the state led social policies. Tariffs were much lower cost, and the difference was paid from the budget. Now tariffs will be objective, and compensation will go to the population, depending on income level.

Andrii Duda said that in houses with condominium and HCC many tenants are entitled to discounts. Heat sanitation requires large investments. And the privileged category has no such money. Their share shall be undertaken by the state.