The IMF memorandum does not contain a clear commitment to increase utility tariffs in Ukraine. It contains a broader framework on how to create conditions to make the energy market interesting for business, so that the electricity shortage can be compensated for now.
This was stated by Finance Minister Sergiy Marchenko during a telethon, UNN reports .
Details
There is no clear commitment to raise tariffs. There is a broader framework on how to create conditions for the energy market to be interesting for business, so that we can now compensate for the electricity shortage, because this issue is extremely relevant now. I think that between tariffs and volumes, we should take into account the need to compensate for the volume of generation. This is an extremely critical issue now
He reminded that the Government had recently raised electricity tariffs for households.
There is an independent commission that sets tariffs in this market, and the question here is how much additional increase can be perceived by citizens. The availability of electricity, in my opinion, is a bigger problem than tariff setting
Addendum Addendum
The IMF Memorandum indicates that potential reforms, as soon as conditions allow, include additional gradual tariff increases (taking into account the new tariff methodology and social considerations during the war), securing external financing, and providing transparent and exclusively direct budget support to energy state-owned enterprises. "As soon as the war is over, a gradual increase in gas and electricity tariffs will be required to recover costs, while allocating adequate targeted resources to protect vulnerable households," the Memorandum says.
Recall
A key condition for the September review of the Extended Fund Facility (EFF) program has already been met - the reboot of the Bureau of Economic Security. Currently , there are a number of technical requirements, mainly related to humanitarian and fiscal policies, that can be met by the deadline. The next reviews of the program, where Ukraine can receive $2.2 billion, are scheduled for September and December.