Economy

We overpay several times: how in Ukraine they form utility bills

The beginning of 2021 in Ukraine was marked by a sharp increase in utility tariffs

The beginning of 2021 in Ukraine was marked by a sharp increase in utility tariffs. In turn, this provoked protests in many cities of Ukraine, after which the authorities were forced to make some concessions. However, there are still a lot of questions about the current tariffs.

ElitExpert found out how tariffs are formed in Ukraine and how much our compatriots overpay.

Own/other's gas  

Since January 1, the price of natural gas for household customers of Naftogaz Ukrainy has increased to UAH 7,22 per cubic meter, including value added tax, but excluding delivery. Accordingly, most regional gas companies have also raised tariffs: depending on the region, prices per cubic meter varied from UAH 6,99 to UAH 10,80. After the protests, the authorities agreed to fix the price of blue fuel at the level of UAH 6,99 - the lowest figure among suppliers of blue fuel. However, even this price seems somewhat overestimated.

According to mass media, in August 2020, natural gas reserves in gas storages of Ukraine reached a record 23 billion cubic meters. From March to August, reserves increased by 7,2 billion cubic meters. That is, by the heating season, Ukraine pumped a record amount of gas into storage, but the question is, at what prices. According to the data of the Ministry of Economic Development, Trade and Agriculture of Ukraine, in the same August the price of imported gas for Ukraine amounted to UAH 2918,1317 per thousand cubic meters with VAT. In March, when the record download started, it is somewhat more expensive: 4163,7385 UAH. That is, in August, gas was purchased for UAH 2,91 per cubic meter, while it is sold to Ukrainians at UAH 6,99.

In addition, the authorities do not like to remind that they themselves extract blue fuel. According to the Operator of GTS of Ukraine, in 2020 Ukraine mined 20,2 billion cubic meters own gas, as the population consumed 8,15 billion cubic meters. That is, our own gas is more than enough for all Ukrainians, but we are supplied with it not at the prices of the extracted, and not even at the cost of the purchased, but with reference to the current prices in European hubs, because of which the price tag increases several times.

To the total cost of blue fuel, it is necessary to add the price for gas distribution, which varies depending on the region: from 0,37 kopecks to 3,06 UAH. By the way, about how Ukrainians were forced to pay for delivery, ElitExpert previously wrote.

Electricity

Since January 1, the Cabinet of Ministers of Ukraine canceled the preferential tariff for electricity for the population in the amount of UAH 0,9/kWh for consumption of up to 100 kWh. And now the cost of electricity for the population, regardless of the volume of consumption, is UAH 1,68/kWh.

It is known that in December 2020, Energoatom sold electricity to the "Guaranteed Buyer" at 15 kopecks per kWh. But according to the decision of the National Commission, which carries out state regulation in the field of energy and communal services (NKREKU), electricity purchased at 15 kopecks, Ukrainians are forced to buy for 1,68 hryvnias.

Again, if we return to "Energoatom", then for 10 months of 2020 (there are no statistics per hour yet), the NPP produced 63027,8 million kWh of electricity during this period. In the last hour, the population consumed much less — 35236 million kWh. That is, as in the situation with gas, there is more than enough electricity.   

Water

Since January 1, cold water has also traveled. On average, travel will be 20%. For example, in Zhytomyr by 30%, in Odessa by 10%.

Water utilities usually explain the increase in tariffs by the increase in the price of electricity, average wages and reagents. True, if we take all-Ukrainian statistics, since 2013 water tariffs have increased six times. Neither inflation, nor the dollar, nor salaries in our country have increased so much during this time. In addition, if the salary in the structure of the cost of water is 25%, then the tariff should increase to a maximum of 5%, but not by 10-30%.

However, the service providers could have followed the already known path: the service providers included all expenses in the cost price, and the regulator included them in the tariff. At the same time, no tariff audit is conducted, and it is impossible to understand how adequate the formulas specified by the waterworks are.

How much do Ukrainians overpay?

JSC "Naftogaz" hides information about the cost of natural gas production by its subsidiary JSC "Ukrgazdobycha", which provides more than 70% of gas production in the country. Previously, figures of 160-250 dollars per thousand cubic meters were given, but such sums raise doubts - in this case, the enterprise would become unprofitable.

Most likely, the cost of Ukrainian gas is cheaper than the price of purchased in Europe. If you take into account that in August, Ukraine bought UAH 2,91 per cubic meter, then the cost price should be even less. So, taking into account the tariff of UAH 6,99 per cubic meter (+ delivery), Ukrainians overpay at least three times.  

As for electricity, "Energoatom" named its cost price: 54-57 kopecks/kWh. Taking these data into account, Ukrainians also overpay three times. And if you take into account only the purchase price of 15 kopecks, it is more than 10 times. 

If we are talking about water, it is difficult to say for sure how much our compatriots are overpaying. But it is quite possible, about the above-mentioned 20%.  

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