What will change on July 1: electricity becomes more expensive, gas becomes cheaper for businesses

Starting July 1, state regulation of prices for social products is abolished, electricity tariffs are increased, and gas prices for industrial consumers are reduced. For more details, see the article by Intent.

Abolition of state regulation of prices for social products

The Cabinet of Ministers of Ukraine adopted Resolution dated 7 June 2017 # 394 "On Amendments to the Annex to Resolution of the Cabinet of Ministers of Ukraine dated 25 December 1996 # 1548 and Invalidation of Certain Resolutions of the Cabinet of Ministers of Ukraine", which abolished state regulation of prices for food products and services in the markets.

In particular, starting from July 1, 2017, the state regulation of prices for food products and services in terms of establishing

• trade markups not exceeding 15 percent of the wholesale producer price (customs value) for 15 groups of goods (flour, bread, pasta, cereals, sugar, beef, pork and poultry, cooked sausages, milk, cheese, sour cream, butter, sunflower oil, chicken eggs)
• Declaration of changes in wholesale selling prices for 13 groups of goods(wheat flour of the highest, first and second grade, rye flour, buckwheat, beef, pork, poultry meat (carcass), boiled sausages, except for the highest grade, cow's drinking milk (pasteurized, packaged in film), cottage cheese with fat content up to 9%, sour cream with fat content up to 20%, butter with fat content up to 72.5%, chicken eggs, granulated sugar, sunflower oil);
• marginal levels of profitability of production of flour and bread of social grades;
• marginal profitability levels and trade margins for baby food;
• marginal profitability levels for packaging of food products subject to state regulation of prices, excluding the cost of raw materials, not exceeding 10 percent;
• state regulation of prices for services in the food and non-food markets.

Electricity

According to the decision of the National Energy and Utilities Regulatory Commission(NEURC), starting from July 1, the projected wholesale market price for electricity will increase by 1.8% to UAH 1365.72/MWh.

As a reminder, these tariffs have been in place for households since March 2017.

For consumers living in urban areas (including those living in residential buildings equipped with electric stoves), the tariff for electricity consumed up to 100 kWh per month (inclusive) is UAH 0.9 per 1 kWh (including VAT), and for electricity consumed over 100 kWh per month - UAH 1.68 per 1 kWh (including VAT).

For large families, foster families and family-type orphanages, the tariffs are set at the lowest level - UAH 90.0 per 1 kWh (including VAT), regardless of the volume of consumption.

Electricity consumed in apartment buildings and dormitories for technical purposes (operation of elevators, pumps and locking and intercom systems owned by apartment building owners on a joint ownership basis) and lighting of courtyards, steps and license plates is sold at a tariff of UAH 1.40 per 1 kWh (excluding VAT).

Electricity consumed in summer cottages and dacha construction cooperatives, garden associations, garage construction cooperatives for technical purposes (pump operation) and territory lighting is sold at a tariff of UAH 1.40 per 1 kWh (excluding VAT).

At the same time, starting July 1, Naftogaz will reduce the price of gas for industrial consumers by 3%, from UAH 7,430 to UAH 7,208 per thousand cubic meters.

Ігор Льов