The NBU predicts an increase in tariffs for hot water, gas and heating from next year

The National Bank of Ukraine (NBU) predicts an increase in gas, heating and hot water tariffs starting in 2025.

This is stated in the July inflation report of NBU.

This year, utility tariffs for gas, heating and hot water will remain unchanged.

Instead, it is expected that starting from 2025, the prices for utilities will begin to gradually increase. Tariffs will increase in the coming years, and the NBU cites the difficult situation in the energy sector and the state budget as the reason for this.

NBU noted that a significant increase in the cost of energy carriers in order to quickly eliminate the imbalance in the energy sector will become a source of additional inflationary pressure and will have to significantly increase subsidies for the population.

And delaying the decisions on raising tariffs for communal services will lead to a lower level of inflation, but will worsen the financial condition of state energy companies. This will increase the risks of instability in the energy market, worsen the investment potential of the industry, and increase utility prices will be postponed for the future, so it is essentially inevitable.

• Electricity prices have been raised in Ukraine since June 1, 2024. The new tariff is UAH 4.32/kWh. This price for electricity will be valid until April 30, 2025.
• After the start of the full-scale invasion of Russia in Ukraine, the government introduced a moratorium on foreclosure and disconnection of utility debtors from the networks. But that moratorium was lifted in 2024, and the restrictions now apply only when the consumerʼs home has been damaged by hostilities.