Rates are frozen: what does the Cabinet decision say - will it save the country from a humanitarian disaster?

July 08, 2022

First of all, it refers to electricity rates, since their regulation rests with the government


At a meeting on July 7, the Cabinet of Ministers of Ukraine decided to freeze rates falling within the government's responsibility. This applies, in particular, to electricity rates. How would you assess this decision? The "Comments" portal asked some experts.

There can be no other scenario, otherwise we will face a humanitarian catastrophe

Maksym Bielawski, energy expert at Razumkov Centre, former PR director of Naftogaz of Ukraine, is sure that a moratorium on tariff rise is necessary in the conditions of a cruel war.

"There can be no other scenario, otherwise a humanitarian catastrophe will occur," he explains. "According to my calculations, the unemployment rate has increased by approximately 15%."

As for the consequences for market liquidity, that is, the availability of working capital, the expert does not see any particular risks.

"Despite all the difficulties, Ukrainians have found financial reserves and are more or less consciously paying their bills," Maksym Bielawski notes. “It also makes sense to cancel the increase in the rates of gas pumping and storage set by gas storage operators, since it will keep traders from accumulating stockpiles of the flue fuel, creating a risk on the eve of the heating season. The rationale for such a decision was quite controversial (it dealt with the cost of process gas in previous periods and growth of average wages), so it should be cancelled. Otherwise, this factor will lead to a slight revision of other rates directly carried by consumers after the war".


Source:

https://razumkov.org.ua/komentari/taryfy-zamorozheni-pro-shcho-govoryt-rishennia-kabminu-chy-vriatuie-tse-krainu-vid-gumanitarnoi-katastrofy

Maksym Bielawski

Leading Expert, Energy Programmes


Born in 1986 in Zhytomyr oblast

Education:

Zhytomyr State Technological University (2008)

Ph.D in Technical Science (2010)

Ivano-Frankivsk National Technical University of Oil and Gas (2012)

Author of 17 patents and 100 scientific works

Work Experience:

2008 – 2011 — Operator of Gas Infrastructure Units, Controller of Gas Transmission System in Rivne Division of PJSC "Ukrtransgas"

2011 – 2017 — Leading Engineer, Deputy Head of Press-Service, Head of Public Relation Department of PJSC "Ukrtransgas"

2017 – 2018 — HR Director of PJSC "Maine Gas Pipelines of Ukraine", Advisor to the Minister of Energy and Coal Industry of Ukraine

2021 — Director of Integrated Communications of NJSC "Naftogaz of Ukraine"

bielawski.maksym