When rates may change
According to the memorandum, by the end of February 2027, the Ukrainian authorities must conduct a comprehensive analysis of the current system of compensation for housing and communal services. After the completion of this work and the introduction of the necessary assistance mechanisms, a gradual revision of electricity and natural gas tariffs for households is possible.
The document emphasizes that the increase should not occur without adequate protection for citizens with low incomes.
Why the IMF insists on revising tariffs
The International Monetary Fund believes that the current tariff containment model creates a significant financial burden on Ukraine's energy sector.
According to the Fund's estimates, due to fixed tariffs that remain lower than market rates, the state actually spends about 2.2% of GDP in the form of indirect subsidies through state energy companies. Besides, it's still close 0.6% of GDP is directed to direct budget compensation of utility payments.
The energy sector needs investment
The IMF notes that current tariffs cover only about 55% of the market value similar contracts. Because of this, energy companies have limited opportunities to modernize networks, restore damaged infrastructure, and purchase the necessary energy resources.
The Foundation also points out that the industry is increasingly dependent on international financial support, grants and loans. As an example, Naftogaz of Ukraine OJSC, whose debt load in 2025 increased by 63% due to the need to finance repairs and the import of natural gas.
Social protection will become a key condition
The memorandum emphasizes that any increase in tariffs must be accompanied by an effective system of targeted support for the population. Before making relevant decisions, the government should assess the effectiveness of current assistance programs and, if necessary, update them in order to minimize the financial burden on socially vulnerable categories of Ukrainians.
Tariff increases have already started in other areas
At the same time, a revision of water supply tariffs is already underway in Ukraine. In a number of cities, prices have increased significantly: in Pavlohrad, a cubic meter of water is expensive 113 hryvnias, in Drohobych — UAH 87.3, in Zaporizhzhia — UAH 69.3, in Chernivtsi — UAH 63.5, and in Borodyanka, Kyiv region — UAH 139.3.
"Kyivvodokanal" also submitted a proposal to increase tariffs in the capital. If it is supported, the cost of water supply and drainage for Kyiv residents may almost triple.
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