The Executive Committee has not approved the new heating tariffs for businesses and public sector organisations in Mykolaiv

A high-rise block in Mykolaiv, illustrative photo from the NikVesti archive

The City Council’s Executive Committee has not approved the setting of new heating tariffs for «Mykolaivoblteploenergo» for the next 12 months. The changes were intended to apply to businesses and public sector organisations. At the same time, the cost of heating for the general public was to remain unchanged.

The relevant decision was adopted by members of the Executive Committee at a meeting on 28 October, according to NikVesti.

Members of the Executive Committee were asked to introduce a two-part tariff system for heat energy and its supply. This system comprises two components: a charge for heat actually consumed and a fixed component relating to the maintenance of the heating network.

However, this draft resolution did not receive the required number of votes: 11 voted in favour, whilst 2 abstained.

Following this, Deputy Mayor Yurii Andriienko added that this matter would be brought up for consideration at the next meeting of the Executive Committee, which will be an extraordinary session.

Mykola Lohvinov, Director of «Mykolaivoblteploenergo», explained in a comment to NikVesti that the company has been operating under a two-tier tariff for the third year running, and that the rates are reviewed annually.

«We’ve had a two-tier tariff for three years running now. We approve these tariffs every year. However, we do not apply these tariffs to households, as there is a moratorium on changing them. The tariff will only change for businesses and public sector organisations; it remains unchanged for households,» he explained.

What tariffs are being proposed?

According to the draft decision, in the basic scenario — excluding additional costs for the maintenance of central and individual heating substations — the calculated cost of the heat supply service will be:

• for households — 4,945.14 hryvnias per gigacalorie;
• for public sector organisations — 6,450.82 hryvnias;
• for other consumers — 7,559.34 hryvnias;
• for religious organisations — 6,453.71 hryvnias.

These figures are expressed as a single-rate equivalent, inclusive of VAT. As the tariff is a two-part tariff, the actual charges consist of two parts. Different rates apply to premises where there are costs associated with the maintenance of heating substations.

Why has a new tariff been set for the general public, yet they will not have to pay more?

Although the company has calculated an economically justified cost of heat, current legislation does not permit this to be applied to the general public.

Therefore, the draft decision specifically states that, during martial law and for six months following the month in which it ends, the tariff in force on 24 February 2022 will apply to payments by the public.

Its flat-rate equivalent is 1,999.08 hryvnias per gigacalorie, including VAT. Consequently, the figure of 4,945 hryvnias stated in the document does not mean that residents will be billed at that exact price.

By how much will heating costs rise for businesses and public sector organisations?

The director of «Mykolaivoblteploenergo» did not specify the exact percentage of the increase during the conversation. According to his preliminary estimate, the rise could be around 15 per cent.

«To be honest, I don’t recall, as I haven’t carried out that analysis. Legal entities and public sector organisations account for 20 per cent of our total turnover. Even if the tariff there increases by 15 per cent, it won’t be critical. The tariff for alternative fuel will rise by 16 per cent due to the cost of pellets. Therefore, I think the increase will not be critical for the budget either,» said Mykola Lohvinov.

At the same time, the director noted that the main financial problem facing the company remains the loss-making tariff for domestic customers. According to him, this category accounts for around 80 per cent of consumers.

In addition to heat supply tariffs, the draft resolution provides for setting the cost of transporting thermal energy from the Mykolaiv CHPP via the «Mykolaivoblteploenergo» networks.

The new tariffs are proposed to be set for 12 months — from 1 November 2026. To this end, the draft resolution still needs to be approved by the city council’s executive committee.

Read also the NikVesti article «Winter on backup power. Will Mykolaiv have enough heat and water during power cuts?».

As a reminder, preparations for the heating season are nearing completion in Mykolaiv. Heat supply companies plan to be ready to switch on the heating after 20 October, although preliminary estimates suggest that heat may begin to be supplied to the city from around 1 November.