The payment of subsidies in monetary form as well as monetization of subsidies are right tools to increase social protection of people and to ensure energy efficient measures. This was announced by Prime Minister of Ukraine Volodymyr Groysman during a meeting on the introduction  of payment of subsidies in cash. The meeting was chaired by the President of Ukraine Petro Poroshenko and the Prime Minister.

Monetization of subsidies is a logical continuation of systemic steps to reform the housing and utilities, energy and social sectors. According to the plan, the recipients of  subsidies who applied for state assistance before January 2019 will receive cash money in March. Several mechanisms for providing funds to citizens were shaped. People who saved resources due to energy efficient measures will receive compensation. And this principle will be introduced on a permanent basis.

According to the Head of Government, the Cabinet of Ministers has formed a comprehensive system of subsidies. It has become an important component of policy on energy independence country and social protection of people. But if earlier there were  non-cash subsidies, it was almost impossible to keep track of them, now the mechanism of effective use of funds has been improved.

The Prime Minister said that attention was also devoted to the issue of real account of resources and he stressed the burden of utility bill is unacceptable.

"We will protect people. We came up with efficient decisions. We are launching monetization, therefore the system will work. We are on the right path to increase social protection of people ", the Prime Minister underscored.

Background

The program of subsidies is an effective instrument to help vulnerable groups of the population. In 2017, the Government introduced a mechanism to stimulate efficient use of gas and electricity during the heating season. Thus, in 2018, compensation for efficient use of resources amounted to UAH 700. Nearly 1.3 million of households  received the said compensation. Moreover, unified register of recipients of subsidies was created in 2018.  This year, the Energy Efficiency Fund is scheduled to start its work as a tool to promote energy-saving technologies.