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Utility payments in Ukraine: affordability, subsidies and arrears


  • Samuel Fankhauser

    (UCL School of Slavonic and East European Studies)

  • Yulia Rodionova

    () (EBRD)

  • Elisabetta Falcetti



Transition has led to a significant increase in the severity and incidence of poverty in Eastern Europe. One important aspect of poverty is access to, and the affordability of, basic services like electricity, heat and water. This paper provides evidence on this issue from the Ukraine Longitudinal Monitoring Survey (ULMS). The paper identifies considerable differences in both access and affordability between different localities in Ukraine. Social protection measures can help to alleviate affordability constraints, but the analysis finds that social support is not well targeted. The currently low tariffs prevent an escalation of affordability problems but constraints nevertheless exist. Many households have accumulated substantial arrears as a consequence, although non-payment is a complex issue and not solely a function of affordability.

Suggested Citation

  • Samuel Fankhauser & Yulia Rodionova & Elisabetta Falcetti, 2008. "Utility payments in Ukraine: affordability, subsidies and arrears," UCL SSEES Economics and Business working paper series 87, UCL School of Slavonic and East European Studies (SSEES).
  • Handle: RePEc:see:wpaper:87

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    References listed on IDEAS

    1. Julian A. Lampietti & Anke S. Meyer, 2002. "Coping with the Cold : Heating Strategies for Eastern Europe and Central Asia's Urban Poor," World Bank Publications, The World Bank, number 15174, July.
    2. World Bank, 2005. "Ukraine : Poverty Assessment, Poverty and Inequality in a Growing Economy," World Bank Other Operational Studies 8803, The World Bank.
    3. Julian A. Lampietti & Anthony A. Kolb & Sumila Gulyani & Vahram Avenesyan, 2001. "Utility Pricing and the Poor : Lessons from Armenia," World Bank Publications, The World Bank, number 13913, July.
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    Cited by:

    1. Martins, Rita & Quintal, Carlota & Cruz, Luís & Barata, Eduardo, 2016. "Water affordability issues in developed countries – The relevance of micro approaches," Utilities Policy, Elsevier, vol. 43(PA), pages 117-123.
    2. International Monetary Fund, 2010. "Islamic Republic of Iran; Selected Issues Paper," IMF Staff Country Reports 10/76, International Monetary Fund.

    More about this item


    affordability; energy; water; social protection; Ukraine;

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • P2 - Economic Systems - - Socialist Systems and Transition Economies
    • P3 - Economic Systems - - Socialist Institutions and Their Transitions
    • P36 - Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water


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