Economy

Lviv asks government not to change methodology for compensating heat tariffs

Lviv City Council has appealed to the Cabinet of Ministers of Ukraine with a request not to adopt, or to revise, the proposed changes to the methodology for determining the difference in tariffs for heat energy, as they could deprive the city of more than UAH 3 billion in state compensation and complicate preparations for the next heating season. This was reported by Lviv’s First Deputy Mayor, Andriy Moskalenko.

The issue concerns the proposed changes to the methodology approved by Cabinet of Ministers Resolution No. 977. According to the city’s estimates, if these changes are adopted, the amount of funds that Lviv can receive as compensation for the tariff difference will be significantly reduced.

The City Council recalls that heat tariffs for households in Lviv have not changed since 2019, while the costs of heat supply companies for electricity, network repairs, equipment, materials and wages have increased substantially. To ensure the stable operation of the heat supply system and the passage of heating seasons, the city has been supporting these companies with funds from the local budget.

According to Andriy Moskalenko, for years local budgets have been directing funds not to tariff compensation, but to ensuring the operation of heat supply companies, network repairs, and the purchase of equipment and materials, whereas compensation for the tariff difference is the responsibility of the state. In Lviv, they believe that the proposed approach, under which such support may become grounds for reducing state compensation, is unfair to communities.

The Director of LMKP “Lvivteploenergo”, Oleksandr Odynets, noted that an unchanged household tariff against the backdrop of rising gas, electricity and materials costs makes state compensation for the tariff difference critically important. According to him, thanks to support from the city budget, the company has no debts to state energy supply companies and pays on time for the gas it consumes; however, the proposed changes to Resolution No. 977 put at a disadvantage precisely those communities that have supported their companies and have not accumulated debts.

Lviv has already sent the relevant appeals to Prime Minister of Ukraine Yuliia Svyrydenko and Deputy Prime Minister for Ukraine’s Reconstruction — Minister for Communities and Territories Development of Ukraine Oleksii Kuleba. The City Council warns that potential changes to the methodology could negatively affect not only Lviv, but also other Ukrainian communities which, under wartime conditions, are ensuring the operation of critical infrastructure and preparing for the new heating season.