Forecast on Utility Rate Increases in Ukraine
The National Bank of Ukraine predicts that utility rates will rise in the coming years, specifically starting in 2026.
This information is detailed in the inflation report for April.
It is expected that current rates for gas, heating, and hot water will not be revised this year.
“However, the challenging situation in the energy sector and fiscal consolidation will likely lead to gradual adjustments of these rates in the coming years. Specifically, it is expected that the process of bringing them to economically justified levels will begin in 2026,” the report states.
It is noted that delaying the increase will result in lower inflation but worsen the financial health of state energy companies.
“At the same time, the risks of instability in the energy market will increase, investment potential in the sector will deteriorate, and price pressure will only be postponed to the future,” the NBU added.
Conversely, a rapid and significant rise in energy prices to address imbalances in the energy sector will intensify inflationary pressure and necessitate increased subsidies for the population, according to bank experts.
Reminder:
“Naftogaz of Ukraine” has extended the “Fixed Tariff” for gas supply to the population until April 2026.
As of May 31, a price of 4.32 UAH/kWh for electricity has been set for all residents of Ukraine, regardless of consumption volume.