Briefly

The Verkhovna Rada adopted bill No. 13219: until the end of martial law plus one year, local authorities are granted the power to set tariffs for water supply and sewerage. 247 members of parliament voted for the decision. NKREKP retains control over licensing conditions and tariff verification.

What exactly changed

The document temporarily shifts the tariff-setting function from the central regulator to local self-government bodies. NKREKP licensees have 90 days after the law enters into force to submit their calculations to local councils. Until local decisions are adopted, previously approved NKREKP tariffs will remain in effect.

“Cities will be able to make their own decisions. Someone will raise tariffs, someone will not, someone will provide funds from the budget. But the situation where these tariffs have not changed since 2021 is probably not entirely correct, because we understand — there is a huge problem with the water utilities. Although such a step may not completely solve the problem, it will partially begin to address it.”

— Andriy Herus, chair of the Verkhovna Rada energy committee

Context and why this happened

The background is cost pressure: the war increased prices for energy, materials and logistics for water utilities, and centralized regulation could not quickly adapt to local conditions. The decision is meant to give local leaders a tool for rapid response and to avoid a “one-size-fits-all” approach in a situation where the needs and capacities of communities vary greatly.

What NKREKP keeps

The national commission will retain licensing functions and the power to verify the justification of tariffs. This is an important mechanism to prevent abuses — if a local council sets tariffs non-transparently, the regulator will be able to intervene within its authority.

Practical consequences for consumers

Greater variation in tariffs between communities is expected. There is already an example: in Boryspil the tariff exceeds 65 UAH/m3, while in Kyiv it is around 30 UAH/m3. For consumers this means that in some cities bills may increase, while in others they will remain at previous levels thanks to local subsidies or budgetary transfers.

Risks and how to mitigate them

The main risks are unequal access to services, political pressure on local councils, and non-transparent tariff calculations. To reduce them, prompt transparency standards are needed: public calculations, transparent procurement procedures for water utilities, and mechanisms for targeted assistance to vulnerable households.

What is important to remember

This is a temporary measure: the law applies “until the end of martial law plus one year.” The political sensitivity of the issue is visible from earlier incidents — in 2023 NKREKP’s attempt to raise tariffs was withdrawn after criticism from Bankova (the Presidential Office) and the government, and in 2024 the regulator raised tariffs for businesses while keeping household prices at the February 24, 2022 level. Therefore it is now important that local responsibility be accompanied by transparent oversight and social guarantees.

Conclusion

The decision gives local authorities a chance to respond more quickly to the real costs faced by water utilities, but it also increases the importance of transparency and control. Now the ball is in the courts of the communities and the regulator: can operational responsiveness be combined with guarantees that water will remain affordable for everyone?