The initiative of the National Commission for the Regulation of Energy and Utilities of Ukraine to increase electricity tariffs for businesses could lead to catastrophic consequences for the municipal sector. This was reported by housing and utilities expert Oleg Popenko on the air of political scientist Yuriy Romanenko.<\/p>\n
According to the expert, the main goal of such decisions is to create conditions for the enrichment of a very narrow circle of people. He emphasizes that the owners of specific generation plants already receive significant funds during periods of peak loads. However, the new rules will allow them to generate money uninterruptedly and without any real need for the energy system.<\/p>\n
“Raising electricity prices is to achieve the goal that a limited group of businesses in Ukraine that invested money in all these gas-piston plants, and those who invested in solar stations, would have excess profits. They are now earning at a certain time when there is a need to cover peak electricity loads. And so they will be able to work around the clock, although there is absolutely no need for this,” he noted.<\/p>\n
Popenko stressed that the state’s energy system is currently functioning quite stably and without critical failures. He explains that the spring period is going well thanks to favorable natural conditions and the operation of renewable sources. Even scheduled repairs of nuclear power plants did not affect the overall ability to meet the needs of domestic consumers.<\/p>\n
“We are going through April, and we have not had any outages in Ukraine due to electricity shortages. There were outages when something was broken, there were hits, and there were not many of them, not in all regions. We are coping calmly: the sun is working, a lot of water has appeared, the nuclear power plant even went for repairs, and we are working great,” the expert explained.<\/p>\n
As the specialist said, the regulator’s decision looks like a frank step towards large monopolists. He draws attention to the establishment of the maximum cost of generation at an unprecedentedly high level. Such a pricing policy will operate throughout the day, which will significantly increase the financial burden on the entire system.<\/p>\n
“The National Commission for the Regulation of Energy and Power Generation of Ukraine has gone along with this huge business, has gone along with the monopoly and has set price caps at the level of 15 hryvnias. This is the maximum price of electricity only for generation without VAT. I emphasize, 15 hryvnias without VAT, only for generation for all 24 hours a day,” Popenko explained, commenting on the cost of electricity per kilowatt.<\/p>\n
The expert explained what the real financial consequences for Ukrainian legal entities from such dubious initiatives will be. He draws parallels with past experience, when similar price caps have already led to real shock payments. As a result, the average cost of electricity may increase almost twice compared to current market indicators.<\/p>\n
“All this will lead to the prices that were in January, when our price caps were kept at the same 15 hryvnias. The price of electricity was then 20-22 hryvnias, and the average for the month was 15 hryvnias per kilowatt. And all this can lead to the fact that we will have a real price of 15 hryvnias on average per kilowatt, while now we pay 9.5,” he stressed.<\/p>\n
Popenko noted that there is a much more logical approach to market regulation in conditions of a potential capacity shortage. He proposes to apply high tariffs exclusively during hours of maximum consumption in order to stimulate generation at the right time. The specialist considers the introduction of round-the-clock maximum prices to be an outright fraud and a previously agreed-upon scheme.<\/p>\n
“If you are already worried that there will be no electricity at certain hours, you can introduce price caps of up to 15 hryvnias, for example, from 5 p.m. to 10 p.m., when we theoretically have a deficit. Please introduce them during peak hours. I believe that the position of the National Commission for the Regulation of Energy and Utilities of Ukraine to introduce 15 hryvnias around the clock in this situation is a reinforced concrete conspiracy,” the expert said.<\/p>\n
According to the analyst, representatives of the highest parliamentary structures are also involved in this corruption process. He points to the non-transparent actions of the profile committee, whose leadership initiated the increase without appropriate official procedures. This raises serious questions about the legality of the legislative body’s open pressure on a formally independent regulator.<\/p>\n
“The chairman of the Verkhovna Rada Committee on Energy and Housing and Communal Services, Gerus, took part in this. He sent a letter on behalf of the committee under his signature, but no committee meetings were held and the committee did not make any decisions, but he demands an increase in price caps. We need to figure out whether there are any criminal articles in this, because this is what the Verkhovna Rada demands from a one hundred percent independent body, the National Commission for the Regulation of Energy and Utilities of Ukraine,” Popenko said.<\/p>\n
The expert emphasized that critical infrastructure enterprises will suffer the greatest blow from such energy games. He explains that water utilities have already exhausted their financial reserves due to the inconsistency of approved tariffs with real costs. Further increase in the cost of resources inevitably threatens mass bankruptcies and water supply shutdowns in many cities. “Water utilities ate up electricity in January-February, because their budgets, taking into account the fact that the water utility tariff has not increased for the last four years, are critically unable to pay for this electricity. The cost of electricity for water utilities exceeded the budget by an average of 30-50 percent. Many water utilities are on the verge of being transferred to the supplier of last resort, and this will lead to a complete shutdown of our entire industry,” Popenko warns.<\/p>","protected":false},"excerpt":{"rendered":"
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