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In Chervonograd, they want to raise water tariffs by approximately 20%

Pursuant to clause 2 of section II of the Procedure for informing consumers about the intention to change prices/tariffs for communal services with justification of such necessity, approved by the Order of the Ministry of Regional Development, Construction and Housing and Communal Services of Ukraine dated June 5, 2018 No. 130, CP “Chervonogradvodokanal” informs consumers, which intends to establish tariffs for centralized water supply and centralized water drainage.

To date, there are tariffs for centralized water supply and centralized water drainage for all categories of consumers, which were established by the Decision of the Executive Committee of the Chervonograd City Council dated 12/21/2021 No. 189, namely:

centralized water supply – 20.77 UAH/m³;
centralized drainage – 16.26 UAH/m³.

The urgency of revising the current tariffs is due to the following objective reasons:

1) an increase in the subsistence minimum for able-bodied persons (2,684 hryvnias from 1.12.2022) and the level of the minimum wage (6,700 hryvnias from 1.10.2022) in accordance with Law No. 1928-IX dated 02.12.2021 “On The State Budget of Ukraine for 2022” and Law No. 2710-IX dated November 3, 2022 “On the State Budget of Ukraine for 2023”. Labor costs are brought in line with the Sectoral Agreement between the Ministry of Community and Territorial Development of Ukraine, the Association of Employers’ Organizations “All-Ukrainian Confederation of Employers of the Housing and Communal Industry of Ukraine” and the Central Committee of the Trade Union of Employees of the Housing and Communal Industry, Local Industry, Household Services of the Population of Ukraine for 2017-2024. Labor costs will increase by 17.79% compared to the current tariff;

2) an increase in costs for material resources by 23.56%;

3) an increase in costs for fuel and lubricants by 146.24%;

4) an increase in depreciation deductions by 12.77%;

5) a 7.63% increase in costs related to the payment of taxes, fees and other mandatory payments provided for by law;

6) an increase in costs for pumping water at the CTP by 34.76%.

In order to ensure stable and high-quality production and provision of centralized water supply and centralized drainage services, there was a need to revise the current tariffs to an economically reasonable level.

The tariff calculation was carried out in accordance with the Resolution of the Cabinet of Ministers of Ukraine “On ensuring a unified approach to the formation of tariffs for housing and communal services” dated 01.06.2011 No. 869 (as amended by Resolution of the CMU dated 03.04.2019 No. 291) in compliance with the requirements of the Order Ministry of Regional Development, Construction and Housing and Communal Services of Ukraine “On approval of the Procedure for consideration by local self-government bodies of calculations of tariffs for thermal energy, its production, transportation and supply, as well as calculations of tariffs for communal services submitted for their establishment” No. 239 dated 12.09. 2018

The estimated (planned) tariff for centralized water supply and centralized water drainage services is:

centralized water supply – UAH 24.18/m³ including VAT (+16.42% to the current tariff);
centralized drainage – UAH 19.45/m³ including VAT (+19.62% to the current tariff).

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