Ukraine: public utility tariffs in Kyiv

Kyiv City Council is increasing utility tariffs for public and private sector organizations despite intervention from the President.

First, the council adopted three directives increasing tariffs a number of times, which were then cancelled by Presidential decree.

Simultaneously, the Antimonopoly Committee brought an action against the council on the grounds that its setting of tariffs was anti-competitive behaviour.

Next, the council adopted new directives almost identical to the previous ones but did not apply the tariffs to the Presidential Secretariat, the Cabinet of Ministers, the Parliament, the Kyiv Mayor's Office and government ministries.

Instead, they introduced even higher tariffs for special market participants: casinos, nightclubs, strip clubs, other bars in night clubs, political party offices, exchanges, pawnshops, estate agencies, weapons shops, antique shops, jewellery shops, mobile phone operators, currency exchange bureaux, hotels (3, 4 and 5 star only), car showrooms and valuers.

The new tariffs are:

Heating during the heating season

• budgetary organizations: UAH 6.61 m2 (an increase of UAH 3.23 m2)
• commercial enterprises: UAH 18.35 m2 (an increase of UAH 12.97 m2)
• special market participants: UAH 51.14 m2 (an increase of UAH 45.76 m2)

Cold water supply and sewage removal

• budgetary organizations: UAH 4.88 m3 for (an increase of UAH 2.06 m3)
• commercial enterprises: UAH 23.07 m3 for (an increase of UAH 18.57 m3)
• special market participants: UAH 42.76 m3 for (an increase of UAH 38.26 m3)

Hot water supply and sewage removal

• budgetary organizations: UAH 24.18 m3 for (an increase of UAH 9.29 m3)
• commercial enterprises: UAH 64.22 m3 for (an increase of UAH 47.65 m3)
• special market participants: UAH 157.45 m3 for (an increase of UAH 140.88 m3)

Law: President’s Decree #1058/2008 of November 20, 2008; Kyiv City Council Directives #1661, 1662, 1663 of November 27, 2008