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IMF representative: monetization of subsidies encourages energy saving

The system of housing subsidies has improved but still requires modernization.

IMF representative: monetization of subsidies encourages energy saving
Jérôme Vacher
Photo: Photo: Kyiv Post

Tariff adjustment and management reform in Naftogaz made it possible to move on to the development of the energy market and improve the system of subsidies to the population, an IMF Resident Representative in Ukraine, Jérôme Vacher, said during the 7th National Expert Forum, organized by Gorshenin Institute.

"An important part of the energy sector policy is to make sure that people who need support receive compensation. We have stopped subsidizing state companies and rich households through low tariffs, and give subsidies to those who really need them," Vacher said.

"However, this system also requires modernization so that subsidies were truly targeted and monetized which will provide incentives for energy saving.".

Vacher stressed that further reforms in the energy sector should allow consumers to regulate their own consumption.