Electricity tariffs will be raised in Ukraine starting in September.
As reported by “Khvylya”, the relevant decision was made at a meeting of the National Commission for State Regulation in the Energy and Utilities Sectors on August 26. Electricity distribution tariffs will be raised for non-household consumers. At the same time, household tariffs for citizens remain at the previous level. The reason for the price increase is the need to cover debts to the state energy system operator “Ukrenergo” and finance preparatory work for the winter period.
“Such a decision will reduce the mutual debt burden (OSR – Ukrenergo – Generation), and will also allow preparing the necessary range of emergency supplies in case of enemy shelling,” said Oleksandr Baranyuk, director of the Public Enterprise “Smart Electric Grids of Ukraine”.
The increase in tariffs is quite significant. For large industrial consumers (first voltage class), the increase will be about 14%, and for medium-sized enterprises (second class) – about 23%. The maximum price increase will affect regional energy companies in Kirovohrad, Rivne and Khmelnytskyi regions. The minimum increase in tariffs is expected in Chernihiv, Lviv and Cherkasy regions.
“Tariff review is a procedure that takes place on an annual basis. Postponing this decision will mean a very sharp increase in subsequent periods, which will be a blow to the economy,” Baranyuk specified.
He noted that due to debts, legal disputes are already taking place between market participants, and the National Commission for the Regulation of Energy and Utilities of Ukraine has to impose fines on regional energy companies for late payments.
Additionally, the regulator intends to separately review the tariff policy for energy companies in the border regions with the front starting in October – this may affect the work of companies in the Mykolaiv, Kharkiv, Zaporizhia, Sumy regions and the central energy networks of the Dnipro.
Currently, Ukrainians pay UAH 4.32 per kWh for electricity, and this tariff has not changed this year. Until the end of October, the government retained special obligations for the energy market, which guarantee affordable prices for the population. However, starting in November, the price of electricity for citizens may increase, as the current benefits will end. Experts believe that the current cost does not compensate for the real costs of energy suppliers.
