Today, a press conference was held at the Lutsk City Executive Committee by the deputy mayor of Lutsk, Leonid KyryLchuk, and the director of the communal enterprise ULutskteploF, Anatoliy Luchko, regarding the economic justification of new tariffs for heat supply and water heating services. As noted at the press conference by the deputy mayor of Lutsk, Leonid KyryLchuk, according to the laws of economics, the size of tariffs for communal services must correspond to their cost. Since 1999, in Lutsk, tariffs for communal services have been regulated at the level of the local self-government body. The methodology of formation - economic justification of the tariff plus a minimum percentage of profitability. Thus, in Lutsk, a pilot project is being implemented on the methodology of forming tariffs for heat supply, water heating, water supply and wastewater disposal. As Leonid KyryLchuk stated, the methodology of calculating tariffs in Lutsk has been recognized by the Government as progressive and is already being introduced in other cities of Ukraine. After the abolition of state price subsidies for housing and communal services, the need for full (100%) reimbursement by consumers of the cost of services became relevant. This process in Lutsk also began to be carried out from 1999. It was precisely these two factors that ensured the possibility for users to receive communal services uninterruptedly and in full, and for service providers to work stably. Where tariff policy is conducted differently, sooner or later problems arise. Recent examples: the termination of gas supply in Belarus, the termination of gas supply for the heat economy of Kyiv, the absence of hot water supply in the city of Chernivtsi since June of last year, interruptions in the provision of services, or their provision according to a schedule in most regional centers of UkraineF, C noted Leonid KyryLchuk. Having summarized the results of activities for 2003, the enterprise "Lutskteplo" identified significant losses caused by the discrepancy between tariffs and the costs of producing thermal energy. The last time tariffs for heat supply were changed was in 1999. During this time, the cost of energy carriers and resources increased several times (gas transportation - by 25%, electricity by 60%), the share of which in the tariff is decisive (48% of the tariff - cost of gas, 12% - electricity), water - by 2 times. In addition, the minimum wage increased from 87 to 205 UAH (or by 2.8 times) (in the tariff structure this is 6%). The inflation index for this period was 161%. All this forced an increase in the tariff by 9 kopecks (from 0.77 UAH to 0.86). In addition, from January 1, 2004, seasonality of the tariff was introduced, which is distributed into the heating and non-heating periods at 70% and 30% respectively. If previously consumers paid according to the tariff of 0.77 kopecks throughout the entire year regardless of the heating season, now during the heating season the tariff will be 1.16 UAH, and in the non-heating season - only 0.56 UAH. Changes in payment for heat supply will in no way affect socially unprotected segments of the population, since the increase in the cost of the service is compensated by the amount of the subsidy. Those citizens whose material condition is below average, but was not grounds for receiving a subsidy, will receive the right to a state subsidy for payment of communal services. In terms of apartment size, the increase in the cost of heating on average looks like this: 1-room apartment (35 sq. m.) + 37.80 UAH per year, 2-room apartment (50 sq. m.) + 54.00 UAH per year, 3-room apartment (65 sq. m.) + 70.20 UAH per year. If we compare the current tariffs for centralized heating and water heating services with the corresponding tariffs in other cities of Ukraine, then at first glance in Lutsk the tariffs are somewhat higher. Thus, for 1 sq. m. of heating in Uzhhorod and Lutsk the tariff is 1.72 UAH/sq. m., in Chernivtsi C 1.67 UAH/sq. m., Kherson and Ivano-Frankivsk C 1.63 UAH/sq. m. Water heating services calculated per 1 person per month are in Uzhhorod C 8.58 UAH, in Lutsk C 13.14 UAH, in Chernivtsi C 8.0 UAH, in Kherson C 11.42, Ivano-Frankivsk C 14.09 UAH. However, only in Lutsk is 100 percent reimbursement of the enterprise's costs for providing services included in the tariff. In Uzhhorod, reimbursement of costs according to the current tariff is 82 percent, Chernivtsi C 89%, Kherson C 61%, Ivano-Frankivsk C 88%. (Indicators provided by the press service of the Lutsk City Council). As noted in conclusion by the director of the enterprise ULutskteploF, Anatoliy Luchko, for the effective development of housing and communal services in Ukraine, the state needs to approve a unified methodology for calculating tariffs for communal services.