Subsidios, aumentos de tarifas y pensiones: qué cambiará en Ucrania a partir del 1 de junio

El comienzo del verano en Ucrania traerá algunos cambios que afectarán la situación financiera de los ciudadanos. Descubre más sobre los cambios que afectarán a los ucranianos desde los primeros días de junio

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Starting June 1, 2024, Ukrainian citizens will face a number of important changes and updates, RBC-Ukraine reports. In particular, the cost of electricity will increase, and some categories of subsidy recipients will have to apply to the Pension Fund to extend their assistance for the next month. 

We will tell you what will change from the first days of the new month in the article. 

What will be the electricity, water and gas tariffs in Ukraine from June 1?

Electricity

Starting from June 1, 2024, the National Energy and Utilities Regulatory Commission (NEURC) has increased the maximum ceiling prices for electricity for businesses.

It is also planned to increase electricity tariffs for households due to the difficult situation in Ukraine's energy system after hostile attacks. Energy Minister Herman Galushchenko said that the decision on the increase could be made by the end of May.

A new price in the range of 3.5-4 UAH/kWh is being considered, as well as the possibility of introducing differentiated tariffs depending on consumption volumes.

Currently, a single tariff of UAH 2.64/kWh is set for household consumers, which was introduced a year ago to overcome the consequences of shelling of the energy infrastructure. Prior to this increase in 2023, a differentiated tariff was in effect: up to 250 kW - UAH 1.44/kWh, over this amount - UAH 1.68/kWh.

Water prices

In the spring of 2024, tariffs for water supply services increased in some small towns in Ukraine. The local authorities of these cities, which have the authority to set utility tariffs independently, in some cases increased prices by 40%.

For example, in Izmail, starting June 1, centralized water supply will rise by UAH 9.5 to UAH 28.1 per cubic meter, and the tariff for centralized sewage will increase from UAH 21 to UAH 33.80 per cubic meter. From the beginning of summer, Zvyagel will pay 56 UAH/cubic meter for water and wastewater instead of the previous 44.17 UAH.

At the same time, the National Energy and Utilities Regulatory Commission (NEURC) has banned any increase in water and sewerage tariffs in large cities in the coming months, including June. 

Gas supply

Naftogaz, the largest supplier of gas to household consumers, extended the “fixed” tariff until April 30, 2025, in line with the government's moratorium on raising the cost of certain utility services.

Thus, Naftogaz's price for households will remain at UAH 7.96 per cubic meter including VAT. Other suppliers set their prices at UAH 7.7-9.9 per cubic meter.

Why might we receive zero-subsidy bills in the summer?

Ukrainians will receive a subsidy for the non-heating period. For most households, the financial compensation for utility bills was transferred automatically, but it could become “zero”.

Since there is no need to pay for heating from May to October, the difference between the cost of housing and communal services and the amount of the mandatory payment for which the assistance is granted is reduced. If the difference is zero or negative, the subsidy is equal to UAH 0.00. This means that the amount of payments for utility services does not exceed the mandatory payment.

With the onset of the heating season, this difference will reappear, and the subsidy will be restored.

The mandatory payment for each family is determined individually and depends on the total income of the household members.

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Who will have to re-register the subsidy?

Starting in June 2024, the normal procedure for awarding housing subsidies and benefits will return. Households that received financial assistance to pay for utilities under a special mechanism during martial law (in accordance with Cabinet of Ministers Resolution No. 215 of March 7, 2022) must apply to the Pension Fund of Ukraine (PFU) by July 1, 2024 to continue payments.

This applies to those who:

• Received a housing subsidy or benefit as of February 24, 2022.

• Continues to receive a subsidy or benefit until now.

• Resided or is currently residing in the temporarily occupied territory or in the area of active hostilities.

• Has not applied to the social security authorities or the Pension Fund for reassignment of a subsidy or benefit since the beginning of the war.

It is also necessary to apply for a subsidy for other categories if:

• The living quarters are rented.

• There are internally displaced persons in the household.

• The number of actually living registered persons in the household is less than the number of registered persons.

• There have been changes in the composition of the household.

If the documents for the subsidy are submitted within two months from the beginning of the non-heating season (until July 1, 2024), the subsidy will still be granted from the beginning of such a season.

You can submit an application and income declaration for reassignment of the subsidy at the Pension Fund service centers, Administrative Service Centers (ASCs), local authorities or online through the Pension Fund's electronic services web portal, the Pension Fund mobile application or the Diia portal.

Who can receive increased payments in June?

Working pensioners who have had their pensions recalculated since April 1 will have their payments retroactively in June due to the peculiarities of reporting.

According to the Pension Fund, the actual recalculation will take place after the information on the payment of the Unified Social Tax for the first quarter of 2024 is submitted to the State Register of Compulsory State Social Insurance (these reports were accepted until May 10).

Thus, in June, working pensioners will receive increased pension payments and compensation for the previous two months.

The recalculation applies to those who:

• Has more than 24 months of service after the previous recalculation.

• Reached the age of eligibility for an old-age pension.

The amount of the additional payment is determined individually and depends on:

• The length of the insurance period.

• The salary from which the pension is calculated.

The increase can be calculated from the earnings from which the pension was calculated when it was granted, or from the earnings that a person received while working after the pension was granted.

There is no need to personally apply to the Pension Fund for recalculation: it is done automatically.

We remind you! The National Bank of Ukraine will change the rules of P2P transfers. So far, it is planned to limit citizens to 30 transactions per month. Read here to find out what led to the NBU's decision and what you should prepare for.

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