Whom does the state subsidize with people’s money? – Aliona Babak

Aliona Babak, “Samopomich” MP, commenting on the increase in gas prices.

“On the proposal of the Cabinet, the price of gas for generation of heat and hot water will increase from 2,900 hryvnias to the market one, which can reach 6,800 hryvnias per thousand cubic meters. Accordingly, this will find its reflections in the tariffs for heating for the population – the next heating season, they will grow almost 1.5 times.

The number of recipients of subsidies, which already accounts for 36% of Ukrainian families, will increase proportionally.

Such an increase in tariffs, without monetizing of subsidies and regulation of heat consumption, will lead to the collapse of energy efficiency introduction,” said MP Aliona Babak.

“Under the current mechanism of subsidizing, more than half of Ukrainians will completely lose the opportunity and incentive to engage in energy efficiency. People will not be able to cover current payments, not to mention insulation of houses,” said the MP.

“The rise in prices for heat will be subsidized from the budget; that is direct budget subsidies for Naftogaz will become the subsidies for Naftogaz but through the Program of subsidies this time.

Instead, in our opinion, the government should pay subsidies to people in cash. To this end, the accounts with a special mode of use should be introduced; budgetary funds from these accounts shall be sent only for payment of utility services and investments in energy efficiency. It is important for the recipients of subsidies to have advance sums on their accounts already in the summer in order to make it possible to invest in insulation.

In the summer, the state should also arrange a credit line for heat supplying enterprises for the installation of heat meters and installation of individual heating units in homes, which will help save about 30% of heat energy due to automatic temperature control in accordance with the temperature outside.

When there is no accountability and regulation, one cannot talk about price increases, because we cannot trust virtual calculations when it comes to the most expensive service,” said Aliona Babak.

Alona Babak
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Utilities