You're reading: Official: Rate hikes take effect on Oct. 15

Tariffs for housing and utilities services will increase at the beginning of heating season in Ukraine on October 15, Ukrainian Housing and Utilities Minister Yuriy Khivrych told the Segodnia newspaper.

"[Rates will rise] at the beginning of heating season on October 15. We have no other way out. The change in prices for heat and hot water is a regulatory act which will be discussed for two months starting from August 1," Khivrych said, commenting on the date of the increase in tariffs.

He said price of heat and hot water would increase by 20-30% depending on the region.

"Experts are calculating these figures. This [consists of] just the gas component (on average 53% of net cost), so we take [gas as] a half [of the cost]," the minister said.

Khivrych also emphasized that tariffs will vary in different towns: "It is difficult to establish common tariffs for the whole country, as long as each town has its own expenses structure. For instance, the part of gas price in the net cost of heat ranges from 50% to 60% and higher."

Commenting on the situation in Kyiv, the minister said: "They [the tariffs] amount to 80-85% of the net cost over all Ukraine, while in Kyiv they equal only 60%. From now on they will draw up an account of 100% from net cost everywhere, but we do not know how the price will change in Kyiv. Perhaps it will partially subsidized from the national budget again."

The rise of gas price for the population and housing and utilities enterprises by 50% from August will increase the price of heat and hot water supply, Khivrych said.

"The share of the cost of gas in the net cost of heat and water [supplies] equals 53%, according to our calculations, [so] the price of heat and water will rise by 20-25%," he said.

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