"The Government of the Republic of Belarus (GoB) plans to increase district heating
tariffs to cost-recovery levels and gradually phase out subsidies, replacing them with social
assistance programs. Residential DH tariffs in Belarus are currently at roughly 10†“21 percent
of cost-recovery levels. DH subsidies are highly regressive, add costs to business, and create significant fiscal risks and macroeconomic vulnerabilities.
The study analyzes the social, sectoral, and fiscal impacts of the proposed tariff reform, and identifies and recommends measures to mitigate adverse impacts of district heating tariff increases on the households. The analysis shows that a negative social impact is manageable if a tariff increase is accompanied by countervailing measures to compensate for the loss of purchasing power, in particular of the poor, through targeted social assistance and energy efficiency programs. The reform is more likely to be successful if communication campaigns to address consumer
