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Volodymyr Groysman: Investment of local authorities in the upgrading of the energy system will allow raising energy effectiveness of the cities within a few years
21.07.2016 | 14:24

Local councils can invest budget funds in the modernization of the energy sector, thereby allowing within a few years to achieve energy efficiency in the cities of Ukraine, instead of receiving numerous appeals to prevent raising tariffs that have no legal grounds. This was stated by Prime Minister of Ukraine Volodymyr Groysman at a seminar for regional mass media on energy efficiency and a tariff policy of the Government on Thursday.

Commenting on the adoption by local councils a decision to send an appeal to prevent an increase of gas tariffs, the Prime Minister noted that it is likely a declaration that has no legal grounds as calculations of tariffs for housing and utility services are fixed locally.

"A communal enterprise makes bills basing on their own tariffs and transfers them to Kyiv to be reviewed and approved. Who is the owner of this communal enterprise? The owner is a territorial community. And who controls it? Your local City Council. Why does the City Council decide to stop raising tariffs by their local company? It is sufficient to say to your head not to make any calculations, to fix a loss-making tariff and we will compensate it from the city budget as the difference in tariffs", said Volodymyr Groysman.

However, the Head of Government noted that such a policy would be ineffective. "I mind such an approach, as this approach means guzzling. I am for having a market-based tariff to ensure protection for everyone who needs protection", he accentuated.

Volodymyr Groysman stressed that local budgets had received additional millions and billions [hryvnyas] due to the ongoing financial decentralization. "They have to invest and within 2-3 years [the cities] will achieve energy efficiency", urged the Prime Minister.

The Prime Minister gave an example of the Kyiv City Council, which had established a moratorium on heating tariffs until 1 October. However, the heating season starts on October 15.

"It is about the fact that this means populism. There are politicians who urge city councils to make decisions. They need these [decisions] not to protect, but to make an information campaign against the tariffs", said Volodymyr Groysman.

The Prime Minister stressed that populism is the enemy of the country, while Ukraine needs true and honest leadership. “The time for populism has gone, because populism is destroying us, taking away jobs, independence, the ability to be free. Now there is time for the responsible policy, responsible decisions, possibly for unpopular decisions. But in the end we should succeed, this is what our Government focuses on", summed up Volodymyr Groysman.



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