The decision of the Cabinet of Ministers may lead to a reduction in tax and foreign exchange revenues and a decrease in GDP, according to the Federation of Employers of Ukraine.
Giving energy supply guarantees only to those businesses that import 80% of their energy needs will harm energy-intensive industries and lead to the shutdown of large industries at times of peak demand. This view was expressed by the Federation of Employers of Ukraine (FRU), the Ministry of Industry reported on Monday, June 10.
FRU noted that the power of interstate connections is significantly lower than business needs. This may lead to a shortage of imported electricity, which in the current situation in the state of the energy system of Ukraine cannot be covered by domestic production. The shortage will lead to increased demand for imports and higher prices.
“In auctions for the distribution of interstate connections, enterprises with a low share of costs for electrical energy in the cost of production will have an advantage, such as enterprises of mining and metallurgical complexes, will not satisfy their needs only through imports, which may lead to a stop or restriction in ” production. After all, the power consumption of the mining and metallurgical complex is much higher than the available crossing power,” the FRU stressed.
The federation drew attention to the fact that the increase in the import rate to 80% has already led to an increase in demand, which has caused chaos and an artificial increase in prices in the auctions for the distribution of interstate connections by 20%.
“Due to the very high cost of electrical energy, which in peak hours (from 17:00 to 23:00) reaches 160-200 EUR/MWh, industrial enterprises, a significant part of cost which is the cost of electricity, There is a risk of stopping production or interrupting it at the most expensive time This will negatively affect the amount of goods transported, and will lead to delays in schedules, delays, and disruptions in logistics railway chain and ports.
According to the FRU, the consequences for the state as a whole and the economy of Ukraine are: a reduction in tax revenues and foreign exchange and a decrease in GDP (only for the example of the mining and metal industry: – UAH 10 billion , – $1.3 billion and – 1.4%, respectively), which in turn will lead to a decrease in the defense capability of our state and an increase in unemployment.
As is known, the Cabinet of Ministers adopted amendments to the resolution stating that any industrial facility must import 80% of the electricity for its needs. Ukrainergo for its part the industry is guaranteed another 20%. Meanwhile, business representatives called on the authorities to reconsider this decision.
We remind you that from June 1, 2024, the Cabinet of Ministers significantly increased electricity bills for the population – up to 4.32 UAH/kWh. At the same time, Ukraine increased the maximum price of electricity for businesses.
Source: korrespondent
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