Economy 2022-11-15T06:56:58+02:00
Ukrainian news
Losses Of Heat Supply Enterprises Amount To UAH 4.2 Billion, Losses Of Water Supply Enterprises – UAH 6.3 Bill

Losses Of Heat Supply Enterprises Amount To UAH 4.2 Billion, Losses Of Water Supply Enterprises – UAH 6.3 Billion

heating, losses, water supply, Aliona Babak, heat supply enterprises

The Minister of Development of Communities and Territories, Aliona Babak, claims that the total losses of heat supply enterprises amount to UAH 4.2 billion, the losses of water supply enterprises – UAH 6.3 billion.

She said this in an interview with Ukrainian News Agency.

"Losses of water supply enterprises amount to UAH 6.3 billion. The revenues of these enterprises do not cover expenses. For heat supply enterprises, losses amount to UAH 4.2 billion," Babak said.

She noted that salaries at these enterprises are 22% lower than the average for manufacturing industries in Ukraine.

Babak considers problems with calculations consequence of an inadequate system of state regulation in the field of heat and water supply.

“We must understand that the issue of heating and hot water supply is solely the responsibility of local governments. In this context, we, as a government, must do everything to ensure that local governments have not only responsibilities, but also the ability to perform these functions. We plan to prepare changes in the legislation in order to fully transfer the authority to set tariffs for heat, water, all utilities to the community level," the minister emphasized.

According to her, local governments that have communal property should start with the development strategy of their enterprises.

Besides, she said, it is important to ensure the predictability of the cost of energy for enterprises in the housing and utility sector.

"Europe has long been living in the conditions of the gas and electricity market, and the price there can change every day. But this is the price in spot markets. Large consumers of gas and electricity do not buy resources at prices that are determined at daily auctions. They must have a different system for concluding long-term contracts, where there is a predictability of prices for at least a year," Babak said.

As Ukrainian News Agency earlier reported, the Ministry of Development of Communities and Territories initiates the restructuring of debts of heat supplying and heat generating enterprises, which accumulated after July 1, 2016.

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