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Mariupol has a plan to reduce the growth of tariffs for heating

21 July 2021, 13:25
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Housing and Utilities Infrastructure

Mayor Vadym Boichenko has said that due to the rise in gas prices, the heating tariff may increase by 70%. According to him, this is an unaffordable price for Mariupol residents. In this regard, a plan has been developed in Mariupol, which will help to reduce the rise in heating prices.

The market price for gas is constantly growing. It is 80% of the cost of the service. To cover the costs, the city annually allocated about UAH 100 million from the local budget.

Today the debt of the population to the PU “Mariupolteploset” is more than UAH 500 million. Taking into account the difference in gas tariffs, the debt of the enterprise itself is UAH 1.5 billion.

‘The gas market was formed last autumn. Gas has grown in price in three times. As a result, we face the risk of an increase in heat tariffs by 70-80%. This is unrealistic for residents. Mariupol is working to prevent an explosive increase in tariffs for people and to enter the heating season,’ Vadym Boichenko.

In the past heating season, Vadym Boichenko, together with the Association of Ukrainian Cities, did not allow a significant increase in the heat tariff. Then they made sure that the government did not allow an increase in gas prices and its transportation for the Heating Network. These items were included in the Memorandum.

Instead of the market price for gas UAH 19 000 per thousand cubic meters, there is an option of UAH 7.4 thousand for energy and heat enterprises. But this price is possible if three conditions are met: first - the heating network must have an economically justified tariff, second - 100% payment in advance, third - 100% solvency of the population.

According to Vadym Boichenko, the city has developed an investment plan for the Heating Network for five years, that makes it possible to completely avoid subsidies from the city. According to him, Mariupol will attract UAH 300 million, due to which it will be possible to carry out energy modernization measures. In particular, to unite the boiler rooms and replace up to 80% of the pipes.

In addition to the investment program, negotiations on reducing the cost of gas, the city is ready to allocate an additional UAH 150 million to reduce the cost of heat for residents.

‘In this scenario, the increase in the tariff for the population will not be 70%, but 27%. Our task is to contain as much as possible the growth of heating tariffs for the population. We are ready to use all possible instruments and investment projects’, Vadym Boichenko notes.