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The NBU has given a forecast for utility tariffs: what to expect

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The National Bank of Ukraine predicts that the moratorium will remain in place only on "certain tariffs" for housing and communal services, including heating and hot water, according to a new inflation report by the NBU, UNN reports.

Details

"The NBU assumes that tariffs for most utility services will remain unchanged for the period of high security risks. (...) The forecast assumes that the moratorium on certain utility tariffs (including heating and hot water) will remain in place until the end of martial law. Further, it is expected that tariffs will be gradually brought in line with the economically justified level over several years," the NBU said.

However, the "terms and parameters for adjusting these tariffs" are not defined.

"Uncertainty about the timing and magnitude of tariff adjustments, especially for energy, is a separate risk to the inflation forecast. (...) Price pressure will be postponed to the future. Instead, an accelerated increase in energy costs, which will eliminate imbalances in the energy sector, will be a source of additional inflationary pressure and will require a significant increase in subsidies for the population," the NBU said.

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