The Cabinet approved new regulations: how to reduce subsidies and that price will rise

The Cabinet of Ministers of Ukraine adopted a decision to review the standards of energy consumption for heating. The social norm is charged to the grant, and for the “extra” Gcal of heat, kWh of electricity and cubic meter of gas the Ukrainians pay full price. Experts are sure that the Cabinet decision will lead to the fact that the government can save on subsidies, and the Ukrainians will have to pay more for communal. “Today,” found out who and how will the new social norms of consumption.

What will save the state

The ratio of consumption of gas in Ukraine just a few years was reduced from 11 to 5.5 cubic meters per square meter. The new standard is 5 cubic meters per square meter – will come into force in may this year. Now that the subsidies cover 330 cubic meters heating the apartment with an area of 60 square meters, in the next heating season “utilities discount” will charge only 300 cubic meters. If we continue to burn 330 cubic meters, 30 cubic meters have to pay without subsidies. According to the current rate is still 204 hryvnia.

In the apartment of the same area with Central heating grant will cover instead of 3.28 is only 2.5 Gcal of heat. If you do not reduce consumption, 0,7 Gcal will have to pay without subsidies. In Kiev, this amount of heat will cost about 1411 USD. To learn more, what and how will rise with new regulations, by reading the infographic:

Revision of standards will allow the state to save on the subsidies, said Director of energy programs of the Center for world economy and international relations of national Academy of Sciences Valentin Zemlyansky. According to estimates of the Ministry of social policy, in the following heating season grants will issue 9 of the 15 million Ukrainian families. “Utilities discount” in the budget for this year provided 51 billion hryvnia. “This will lead to the reduction of subsidies. Social norms are reduced, and the subsidy covers only social norms. In addition, it will lead to growth of payment. Something to cover the subsidy, and the rest people have to pay themselves,” – said the “Today” Valentin Zemlyansky.

“This will lead to the reduction of subsidies. Social norms are reduced, and the subsidy covers only social norms. In addition, it will lead to growth of payment. Something to cover the subsidy, and the rest people have to pay themselves,” – said the “Today” Valentin Zemlyansky.

Chairman of the Supervisory Board of the Institute of energy strategies Yuri Korolchuk says: the ratio shows how much, on average, Ukrainians spend resources for heating per square meter of housing. The government, the expert said, before you reduce the ratio, you have to show your calculations: how and why consumption is reduced.

“A certain logic in this decision. Norma – a rough calculation of how much one person can waste water, electricity, gas, heat. This standard is based on calculations that serve the suppliers of heat, these calculations confirms the national regulator. But the government had to explain why reduce norms, to show the calculations,” – said the expert.

When you count the subsidies

Until the end of the heating season, said on the hotline of the Cabinet of Ministers, nothing will change. As new regulations come into force in may, the recalculation will make in the next heating season – from October 2017. Until that time, Ukrainians have the opportunity to insulate their homes and apartments and to reduce actual consumption of heat.

“If you have a subsidy – how many are now paying, and many will pay until the end of the heating season. In the next heating season – Yes, there has to recalculate the subsidy with the new standards,” – said at a government hotline.

“If you have a subsidy – how many are now paying, and many will pay until the end of the heating season. In the next heating season – Yes, there has to recalculate the subsidy with the new standards,” – said at a government hotline.

Also, the amount of subsidy will the new minimum salary. From the first of January the minimum wage increased from 1600 to 3200 hryvnia. According to estimates by GFS, up to 40% of Ukrainian employers pay wages “in envelopes”, having their employees on the minimum wage. Due to the growth of minimal salary to the government will be able to save subsidies of around five billion.

For example, last year a family of three (two adults with minimum wage and child) subsidy was given for communal 163 hryvnia (5,1% of their income). In the new heating season, a family with two minimum wage will have to pay for utilities 640 UAH (10% of income).

Note, the amount of the required payment is calculated according to the formula: income per family member / two living wage × 15%. The resulting amount is the percentage of the total income of the family, who will need to pay for utilities.

What to do

After the next revision of social standards of Ukrainians will have to either revise their consumption, or pay less. Valentin Zemlyansky is convinced: the state should create the rules of the game, to conduct energy audit and determine how many are actually using heat Ukrainians. Now, any apartment house can call the energy auditor who can determine how you can reduce the heat consumption in the house. To do this, each apartment on average you need to pass from 40 to 120 UAH.

READ ALSO: How and why Ukrainians to conduct an energy audit

The modernization will allow to reduce heat consumption by 40-80%. However, it will have to spend millions of hryvnia. There are two sources of financing for such projects: borrowed funds and own savings. To raise funds is possible due to a grant for insulation from one of the international organisations (e.g. EBRD, USAID, IFC, etc.), another option is to budget funding (state or city programs 70/30), to take a loan, for example, in a European Bank.

Note, this year an energy audit may become mandatory for all Ukrainians. According to the draft Law “On energy efficiency of buildings”, all objects under construction and already constructed buildings must undergo an energy efficiency audit at your expense.

“The law of obligations. We all need to understand that this law establishes the requirements for each building energy audit and have an energy efficiency certificate under certain circumstances. Moreover, the law obliges homeowners to carry out technical inspection of air conditioning systems and water systems are concerned that have a capacity of 20 gigawatts. It’s actually a house of 200 square meters”, – said the co-author of the bill Alyona Babak.

Parliamentarians should consider the bill in the next few months.

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