IMF has proposed beginning to raise gas and electricity rates for population starting in 2027
The International Monetary Fund is proposing that Ukraine begin a gradual increase in gas and electricity rates for households as early as 2027.
According to Censor.NET, this is outlined in the updated memorandum of cooperation between Ukraine and the IMF, as reported by RBC-Ukraine.
Details
Before revising tariffs, Ukraine must establish an effective system of targeted support for socially vulnerable households. The tariff increases should help finance the restoration of energy infrastructure.
Ukraine must assess the current consumer support mechanisms by the end of February 2027.
In the long term, the IMF advocates for the full liberalization of energy prices, believing that market-based pricing will help attract private investment in the energy sector’s recovery.
According to the IMF, the rate increases should contribute to:
- funding the restoration of energy infrastructure;
- reducing the debt of energy sector enterprises;
- reducing the amount of hidden budget subsidies.
