Future Changes in Utility Rates: NBU's Predictions

The National Bank of Ukraine suggests that utility rates may increase in the coming years, starting from 2026.

This information is included in the April inflation report.

This year, rates for gas, heating, and hot water supply will not be revised.

"However, the complex state of the energy sector and necessary fiscal consolidation are likely to lead to gradual adjustments to these rates in the future. Specifically, the gradual alignment to economically justified levels is expected to begin from 2026," the report states.

It is noted that delaying the increase will result in lower inflation but will worsen the financial condition of state energy companies.

"At the same time, this will increase the risks of instability in the energy market, diminish the investment potential of the sector, and the price pressure will only be postponed to the future," the NBU added.

Conversely, a rapid and significant increase in energy prices to eliminate imbalances in the energy sector will heighten inflationary pressure and necessitate an increase in subsidies for the population, according to bankers.

As a reminder:

"Naftogaz of Ukraine" has extended the "Fixed Tariff" for gas supply to the population until April 2026.

From May 31, the price of electricity for all residents of Ukraine has been set at 4.32 UAH/kWh regardless of consumption volume.