5 billion shall be spent on energy efficiency, not just wasted

“This year should be declared by the government only the year of road repairs, but at least, the year of road repairs and warm homes. Given this increase in prices for heating, hot water, gas and electricity, spending no budget funds on metering, insulation and regulation of consumption is just economically unadvised. Today in the Parliament we will do our best not to let 5 billion to be wasted instead of being spent on energy efficiency,” said MP from “Samopomich”, Aliona Babak.

A year ago, “Samopomich” supported the introduction of the gas market, because in 2014 Ukraine spent huge amounts of money on Naftogaz’s general grants – 100 billion hryvnias (for reference, 80 billion were spent on military needs). We could not afford to continue bankrolling another war. Therefore, in 2015 already 52.4 billion were spent, and this year the budget provides for 35 billion to be granted in the form of subsidies.

“However, the gas market has not been eventually created. Today, if a commercial company wants to sell gas to the consumers, it must first obtain permission from Naftogaz to get gas from the resources of Ukrhazvydobuvannya. There have been such attempts, but Naftogaz never gave this permission. So, in fact, the consumers have no choice. For the market to work we need such a mediator, we need a share market. This is how it functions all over the world,” says Aliona Babak.

“Samopomich” will not support the government’s proposal to increase budget spendings on subsidies from 35 to 40 billion hryvnias. We offer the following: to allocate these additional 5 billion to an energy efficiency program this summer already: on consumption regulation mechanisms, insulation, metering.

We offer monetization of subsidies – with the right to use the money only for payment of utility services or for energy efficiency (this already encourages saving: for example, not to leave the tap running when not necessary and spend the saved money on insulation).

“Yesterday, the minister of social policy, Mr. Reva, at the meeting of the “Samopomich” faction with Prime Minister Hroisman said that in the budget there were no 40 billion in cash for the subsidies. The question arises immediately, how can all these offsets take place when there is no money? In fact, there must be some money, at least 3 billion hryvnias (the sum of one-month subsidies). We need to find them and dispense the cash this time; this will launch the economy: we will spend it on the payment, heat companies will pay Naftogaz in cash, and the latter will pay the VAT and the rent into the budget of Ukraine,” “Samopomich” deputy suggests.

“Samopomich” Union faction’s stance regarding the problem of gas tariffs:

1. To make a step towards formation of the gas market through the share market mechanism (elimination of Naftogaz from the relations between Ukrgazvydobuvannya and consumers).

2. To spend on energy efficiency these 5 billion hryvnias that are in the budget and which the government wants to additionally allocate for subsidies.

3. Anyone who really needs help should be granted with hard cash with the right to use this money only to pay bills and to have insulation done.

Alona Babak
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Energetics