The National Commission for State Regulation in the Spheres of Energy and Public Utilities (NERC) has planned another increase in tariffs for centralized water supply and sewage for industrial consumers, as reported by the National Association of Mining Industry of Ukraine (NADPU).
According to the Association's information, following the recent rise in tariffs for electricity transmission, gas transportation, services of JSC "Ukrzaliznytsia," and excise duties on fuel, there is a real threat of further increases in production costs in Ukraine.
"This concerns the increase in water tariffs for businesses, and such a decision could have particularly serious implications not only for the mining industry, as many large enterprises, specifically mining and processing plants (MPP), metallurgical factories, chemical, and other productions, utilize significant volumes of water in their technological processes. For such enterprises, water is a critically important resource, and any increase in the cost of water supply will substantially raise the production costs," the Association's statement notes.
Experts from NADPU emphasize that this tariff increase is absolutely unacceptable under current conditions when many enterprises are already facing financial difficulties due to previous tariff hikes. They warn that the additional burden of high water tariffs will lead to negative economic consequences, including an increase in production costs. For many industries, water is a vital component of technological processes, and its rising cost directly affects the final product price, potentially reducing the competitiveness of Ukrainian goods in the global market.
It will also lead to decreased profitability for enterprises, and in some cases, to losses. Additionally, it may result in job cuts and social instability: if companies cannot cover the extra costs, they might start laying off employees, which in turn could lead to increased unemployment and social tension in the country.
Moreover, investment attractiveness will decline - high water supply tariffs may deter potential investors. This will also negatively impact environmental initiatives.
According to experts, even minor changes in the water supply and sewage market can lead to significant negative consequences for the economy, including critical sectors that form the foundation of Ukraine's national economy. At the same time, water supply costs could rise by an average of more than 25%, and sewage costs could increase by more than 10%.
NADPU calls on NERC for extensive discussions with business representatives, relevant associations, and experts to avoid excessive burdens on enterprises during this challenging period.
"It is important that water tariffs are set in a balanced manner, taking into account all economic realities and business needs, to avoid exacerbating the situation and leading to unpredictable social and economic consequences. Therefore, we urge not to allow an increase in water supply and sewage tariffs for businesses!" the statement concludes.