15:59 20.05.2021

Klitschko: From May 20, almost 120 Ukrainian cities to be left without hot water, budgetary institutions without natural gas

3 min read
Klitschko: From May 20, almost 120 Ukrainian cities to be left without hot water, budgetary institutions without natural gas

Due to the actions of the government and NJSC Naftogaz Ukrainy, already in May 120 cities, where 5 million people live, may be left without hot water, and budgetary institutions without natural gas, Mayor of Kyiv Vitali Klitschko has said.

In addition, from October, the entire population may be left without centralized heating, since the Naftogaz's obligation to provide heat supply enterprises with natural gas at a fixed price and without prepayment will cease from May 20, Klitschko said in a video message posted on Facebook on Thursday.

"As the chairman of the Association of Ukrainian Cities, I want to express the position of representatives of local self-government. Today, a critical situation has arisen. Since May 20, the obligation of Naftogaz to supply natural gas to heat supply enterprises under the 'imposition of public service obligations' will cease. This regime provided for the obligation to supply gas at a fixed price, without prepayment. And its cancellation means that now enterprises will buy gas from Naftogaz or other suppliers under market conditions," he said.

"Naftogaz has already set unacceptable conditions. The price is higher than UAH 9 per 1 cubic meter, advance payment, daily order of gas volumes, and excessive penalties even for minor deviations from the Naftogaz's conditions. This will lead to a rapid increase in tariffs for the population and non-payments for utilities. And also – to the exorbitant expenditures of the budgets of territorial communities for the purchase of natural gas for kindergartens, schools, hospitals," Klitschko said.

He recalled that on February 9, 2021, a memorandum was signed between the government, Naftogaz, National Energy and Utilities Regulatory Commission (NEURC) and the Association of Ukrainian Cities to resolve problematic issues in the field of centralized heat energy supply and hot water supply. Local governments have undertaken and fulfilled the following obligations: tariffs for services for the supply of heat and hot water during the heating season did not increase, and the uninterrupted provision of these services to consumers was ensured.

At the same time, the government refused to fulfill its obligations. In particular, there is no compensation for losses to municipal enterprises, which does not allow starting preparations for the heating season. They also arrest the accounts of heat suppliers, block the work of enterprises, and as a result people are left without wages.

"We, representatives of local self-government, demand: immediately unblock the accounts of municipal enterprises and stop charging exorbitant penalties; compensate for the losses of municipal enterprises that have arisen as a result of decisions taken by public authorities; guarantee the supply of natural gas in sufficient volumes to municipal enterprises on the terms of subsequent payment and at the price that is taken into account in the current tariffs for heat and hot water for the population; adopt a bill that will ensure the restructuring of the debt of municipal enterprises for consumed natural gas, write-off of penalties and compensation for the difference in tariffs. These issues need to be resolved urgently! You cannot leave people without services and transfer costs to local budgets that they cannot cover," Klitschko said.

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