Samopomich Union faction’s appeal to the Government and regulatory authorities

Since July, Samopomich Union faction has been trying to carry on a dialogue with the Government on the issues that concern every Ukrainian today. We have tried to conduct this dialogue in a civilized way by addressing the Prime Minister with the suggestions and remarks, waiting for answers. Unfortunately, we haven’t received any answers yet.

The first set of issues with which we referred to the Government was to justify the tariffs for housing and communal services in the light of the profitability of “Naftogaz Ukraine”. We received an answer that as of the end of August this year, the Government had not had the financial plan of the enterprise either for 2016 or for 2017. Therefore, today we ask the Government to provide public information about what the profitability index on the production and sale of gas accounted for in the current price of gas is.

We also urge to show the actual return of “Naftogaz Ukraine” in terms of “wholesale trade of gas” for the 9 months of this year; to show the amount of dividends expected by the budget of Ukraine from this company this year, and of those that are expected for the next year. The fact whether or not the today’s increase in tariffs is reasonable, depends on these indicators precisely. After all, “Naftogaz” has reported that it has $21 billion in net profit for the first half of this year alone. We believe there is a direct connection between the profitability of this enterprise and the Government’s control over this indicator.

The second issue is the “warm” loans for poor people. Who do you provide these loans for if people with a pension of 1, 200 hryvnias cannot get them? It is less than the minimum subsistence income, thus banks do not give loans for the replacement of windows. We demand the Government to adopt a targeted energy efficiency program providing a mechanism of state support for the replacement of windows for people who are below the poverty line.

The third block of questions concerns monetary subsidies. Ternopil – 0% of subsidies for condominiums; Lviv – 10% of subsidies for the condominium; in Kharkiv all condominiums are required to make advance payments for gas. Samopomich Union faction requires shifting to monetary subsidies. We haven’t received information from the Government regarding why it is impossible to do so. And because of non-monetized subsidies all water and heat utilities companies are blocked.

Fourth. There are some very sinister games taking place in the gas market and heat energy market. Who will catch up? Will the tariff for heat for the budget institutions be able to catch up with the changes in the price of gas? Today, “Naftogaz” sent information that the sale of gas to produce heat for budgetary institutions will be 300 hryvnias more than in October in case of advance payment, and another 800 hryvnias more in case of payment after delivery. Dear National Commission for State Regulation in Energy and Utilities! It’s high time you put an end to this mess! You either deregulate the prices for heat and gas or do something, because the new debt is generated every day.

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Utilities