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Special focus : residential gas and district heating tariffs in Ukraine (英语)

Ukraine's residential gas and district heating tariffs are among the lowest in Europe, with several negative consequences, such as more subsidies going to the rich, deteriorating quality of services because of underinvestment in gas and district heating companies, high fiscal burden, and energy inefficiency. In Ukraine, gas and heating subsidies are mainly captured by well-off people because they tend to use more energy. Low residential gas and district heating tariffs are thus not pro-poor. This brief examines the dichotomy of low tariffs and high costs in Ukraine, and sets forth the following recommendations: 1) increase average residential gas tariffs to equal the price district heating companies pay for gas to produce residential heat; 2) increase residential district heating tariffs to cover full financial cost of service; and 3) improve targeting of social assistance programs.

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