Water tariffs will be reviewed under new rules: will Ukrainians’ bills decrease?
Kyiv • UNN
Tariffs will be set by local authorities, while the NEURC will remotely verify their calculations. There will be no automatic reduction in bills.
Ukraine is introducing a new mechanism for monitoring tariffs for centralized water supply and wastewater services. On October 27, the National Energy and Utilities Regulatory Commission (NEURC) approved a procedure for reviewing decisions on the cost of these services. The regulator will analyze whether the tariffs were calculated correctly and whether the expenses included in consumers’ bills are substantiated.
UNN examined who is now responsible for setting them, how the monitoring will work, and what consumers who doubt the fairness of the charges can do.
Who sets water tariffs in Ukraine
In March 2026, the division of powers in the field of centralized water supply and wastewater services changed in Ukraine. Law No. 4777-IX, which entered into force on March 11, transferred tariff-setting powers to local self-government bodies. Where they have the relevant powers, decisions may be adopted by military administrations of settlements. In turn, the licensing of water utilities and oversight of compliance with licensing conditions were transferred to authorized local state administrations. The NEURC retained responsibility for developing tariff-setting methodologies and verifying the correctness of tariff decisions.
As we can see, the new mechanism does not return to the regulator the right to directly determine the cost of water in each city. Local authorities will continue to adopt tariff decisions, while the NEURC may verify whether a decision complies with legislation and approved methodologies.
Water prices in Ukraine are set by local authorities — Shmyhal21.08.26, 12:55 • 3382 views
How inspections of water supply tariffs will be carried out
The NEURC reported that inspections will be scheduled and unscheduled. Both types of oversight will be conducted remotely: officials will not visit enterprises or local authorities. The basis will be the tariff calculations, documents, and explanations used when the relevant decisions were adopted.
Scheduled inspections will be conducted according to an annual plan published on the NEURC website. Unscheduled inspections may be carried out, in particular, if monitoring reveals inconsistencies in the documents, questionable figures, or grounds for examining a sharp tariff increase.
The oversight process will begin with a request to the body that set the tariff. It must provide the decision, the tariff structure, the water utility’s calculations, and supporting materials. The draft procedure stipulated at least ten working days to respond to a request and no more than twenty working days for the inspection after the documents were received. If the necessary information is insufficient, the deadlines will be suspended in accordance with the procedure.
In addition, the regulator will compare the approved tariff with the calculation data. The result will be a written conclusion. It will serve as the basis for replacing the tariff, but it will not automatically cancel it on the day the document is issued.
What will be examined in the cost of water
The water supply tariff covers the costs of extracting, treating, and delivering water to consumers. The wastewater tariff concerns the collection, transportation, and treatment of wastewater. They are calculated separately, although the vast majority of Ukrainians see a single item on their bills covering payment for water supply and wastewater services.
During the oversight process, authorized officials will verify whether the calculations comply with the established methodology, whether there are sufficient documents to substantiate the expenses, and whether the tariff approval procedure was followed. Particular attention will be paid to the cost of electricity for pumps and treatment facilities, labor costs, network repairs, the purchase of materials, and other economically justified components.
Investment expenses, planned service volumes, and the consideration of the results of previous inspections are separate issues. For example, if an enterprise included certain modernization expenses, it is necessary to determine whether their inclusion in the tariff meets the established requirements.
What will happen if the regulator finds violations
Based on the inspections, the NEURC will draw up conclusions. If the calculations are incorrect or the expenses are unsubstantiated, the conclusion will indicate the violations identified and recommendations for remedying them. They may be taken into account when reviewing, adjusting, or setting tariffs in the future. Once approved, the results must be published on the regulator’s website.
At the same time, local authorities have the right to express their objections to the conclusion.
When discussing the regulator’s recommendations, one more important point should be understood. The NEURC’s conclusions will not mean the automatic cancellation of a tariff or the return of money for services already paid for. A subsequent decision to change the price must be made by the authorized body in accordance with the procedure established by law. The new procedure itself does not establish a separate mechanism for compensating the public for overpayments.
Will water bills become lower, and how can they be challenged?
For household consumers, the new measure will provide an opportunity for additional oversight. If an inspection identifies inflated or incorrectly accounted-for expenses and the local authorities subsequently adjust the tariff, this may affect future charges. However, the regulator does not promise an overall reduction in tariffs.
Consumers should first check the current tariff decision on the website of the city or town council or the service provider. After that, they should determine the date the tariff was introduced, the separate costs of water supply and wastewater services, the consumer category, and whether the bill includes other charges not directly related to the price per cubic meter.
If there are doubts about the calculations, a written request may be submitted to the body that approved the tariff, asking it to provide the decision and an accessible justification. If there are indications of a violation, an appeal may be submitted to the NEURC, including through the "Citizens’ Appeals" section on the regulator’s official website or by writing to [email protected].
The application should indicate the locality, the name of the water utility, the details of the tariff decision, and the specific facts that raise doubts, attaching any available documents.
When the new rules will take effect
The NEURC approved the procedure on October 27, 2026. The text of the resolution prepared for the meeting states that it will enter into force on the day after its official publication on the regulator’s website.
It should also be emphasized that the mechanism is designed to operate during martial law and for twelve months after its termination or repeal. It is connected with the temporary redistribution of powers between the NEURC and local authorities.
Will NEURC oversight make water tariffs for households fairer?
The new inspections make it possible to compare local authorities’ decisions with economic calculations and make identified violations public. However, the effectiveness of the system will nevertheless depend on how fully the authorities provide information and whether they take the regulator’s recommendations into account.
As a reminder
Earlier, UNN reported that Ukrainians and businesses are being offered the option of paying to change their electricity consumption schedule. For example, they could shift the operation of appliances from peak-demand hours to another time. To participate, it will be necessary to conclude an agreement with an aggregator—a company that represents consumers in the energy market.