OREANDA-NEWS. September 20, 2010. In the Volyn region under its own initiative till the end of 2010 the Government plans to experiment with providing benefits in cash to pay for electricity to citizens entitled to that by law. The draft of relevant regulations is approved today at a meeting of the Governmental Committee on regional and social policy, construction, housing and humanitarian development under the chairmanship of the Vice Prime Minister of Ukraine Viktor Tikhonov.

The Vice Prime Minister informed that the draft regulations is developed in response to reform the system of benefits, increasing of efficiency and targeting benefits for the most socially vulnerable layers. "The existing procedure for granting exemptions, introduced in the early 90's, does not provide adequate social protection. It is based on the principle of cost recovery to businesses, which provide services to preferential categories of people, but the cost of services rendered by legal entities depends on the tariff policy of service providers rather than state regulation of price reductions"- Viktor Tikhonov said.

Financing costs associated with providing benefits to citizens in cash to pay for electricity during the experiment, the draft document provides for exercise by the Law of Ukraine "On State Budget of Ukraine for 2010" subventions from the state budget to local budgets on granting privileges provided by law and housing subsidies to pay for electricity, natural gas, services, heat, water and sanitation, etc.

According to Viktor Tikhonov, if the government adopts regulations “On Volyn region experiment for benefits in cash to pay for electricity”, its effects will extend to the citizens and their families who are eligible for the benefits to pay for electricity under the law. Governmental official also said that providing such benefits in cash, as draft document provided, would be carried out by work and social protection bodies based on application of the citizen entitled to appropriate benefits.

"The amount of monetary payment will be determined by the size of discounts, which may benefit the recipients. Monthly payments will be carried out through state postal company. Also they can be transferred to personal bank account "- Viktor Tikhonov specified.