Tariffs in Ukraine are rising along with debts - the country is facing rolling blackouts, like in the 90s
Kyiv, April 16 (Navigator, Vladimir Mikhailov) – Debt for electricity in Ukraine is growing faster and faster. Energy workers will not be able to carry out repairs and will be left without salaries, and the population will be left without water and electricity.
In January-February 2014, the debt of end consumers for electricity increased by 18% or UAH 2 billion. – almost the same as for the entire last year (UAH 2,1 billion). Housing and communal services and state mines accounted for more than a third of the increase in debt in 2013 and about half in the first two months of 2014. Such figures were announced by the head of the “Energy of Ukraine” portal, Alexey Chernyavsky, at a round table dedicated to the problem of non-payments for electricity.
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The round table participants noted that the main reason for the growing debt is poor budgetary financing of the difference in utility tariffs, including heat and water, as well as a reduction in funding for state mines.
Although the problem has existed for several years, and experts have discussed this not for the first time, the state is not taking any steps to improve the situation with non-payments for electricity. They have now reached such proportions that they threaten the stability of water and electricity supplies to entire regions.
The financial condition of the fuel and energy complex of Ukraine is deteriorating - in March the energy market received less than UAH 2,4 billion from regional power companies, and in April - UAH 2,3 billion. Energy experts predict that it will be possible to pay only 70% of payments to generating companies this month. Because of this, energy workers will not be paid their salaries in full, and companies will not be able to carry out repairs or purchase fuel. Ultimately, ordinary consumers may suffer and may be left without water and electricity.
“The debt of mines and water canals to DTEK for two months amounted to UAH 466 million, which exceeds the budget of our company’s investment program for this year,” noted company representative Irina Protopopova. This means that non-payments essentially deprived DTEK of the opportunity to invest in development and repairs.
“I don’t see any prospects for the situation to improve,” says Kievenergo representative Ivan Plachkov. In his opinion, now, at best, it will be possible to maintain payments at the current level, but even for this it is necessary to take emergency measures. Ivan Plachkov reminded the audience of the experience of the nineties, when the crisis of non-payments led to rolling blackouts. Now the economic situation is even more difficult, the expert believes, and it is necessary to take the same steps as at the time when payment commissions operated in all localities. This enabled us to ensure the required level of payments.
According to the round table participants, in order to overcome the crisis situation, it is necessary to provide at least UAH 2014 billion in the state budget for 3,4. to compensate for the difference in tariffs, as well as funds to pay for electricity to enterprises that provide water transfer in low-water regions, find sources of filling the budget, raise tariffs to economically justified ones, introduce special accounts for settlements between water utilities and electricity suppliers and strengthen control over allocated funds.
Tariffs in Ukraine are rising along with debts – the country is facing rolling blackouts, like in the 90s.