Tariff hikes of 100-200%. What does the new Memorandum with the IMF promise for Ukrainians?

Energy market expert Oleg Popenko foresees a bleak outlook for tariffs for Ukrainians. According to the latest Memorandum with the IMF, utility costs for consumers could nearly double.

https://focus.ua/opinions/675220-novye-tarify-ne-za-gorami-chto-zhdet-ukraincev-posle-vstupleniya-v-silu-memoranduma-s-mvf2024-10-31 08:20:59

The text of Article 77 of the Memorandum with the IMF, which specifically addresses energy markets and tariffs, clearly states the increase in tariffs. Pay attention to the key phrases:

1. "New tariff formation methodology"

2. "Transparent direct budget support for state-owned energy enterprises."

3. "Restoration (!!!) and enhancement of competition in wholesale and retail gas markets."

4. "Gradual increase of gas and electricity tariffs to the level of cost recovery (!!!)"

Well, you understand that with such a Memorandum, the rise in tariffs will occur as early as 2025, that's clear.

But I noticed how point 4 is phrased.

"To the level of cost recovery."

And here, consumers need to take this very seriously.

Because the cost recovery level at our communal and state enterprises is significantly higher than the actual cost of services. This is because the cost of services can include everything from iPhones to Land Cruisers, all at the expense of the consumer.

By the way, "significantly" could mean 100% or even 200%.

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