Metallurgists turned to NEURC because of the tariff for electricity distribution – media

The association of enterprises Ukrmetallurgprom (UMP) called on the National Commission for State Regulation in the Spheres of Energy and Utilities (NCREKU) to prevent the unification of tariffs for electricity distribution services. This was stated in the association’s letter to the chairman of the National Energy and Regulatory Commission Valery Tarasyuk, RBC-Ukraine reports on Friday, July 12.

“Information has appeared in the media about the possibility of NEURC to cancel the division of consumers of services for the distribution of electrical energy into classes. We believe that such a decision can have serious negative consequences for business of the mining and metallurgical complex (MMC). , and therefore for the economy of Ukraine as a whole,” – stated in UMP.

Today consumers of electrical energy in Ukraine are divided into two classes: 1st class – consumers using electrical energy with a voltage of 27.5 kV (large industry), and 2nd class – all other consumers. But mining and metal enterprises use high-voltage electrical energy, which requires significantly lower distribution costs for distribution system operators.

“MMC enterprises have their own energy infrastructure, including transformers, substations and high-voltage lines. Eliminating the classification into classes will lead to double payment – for themselves and the general infrastructure. This will not only increase their operating costs, but also negatively affect the competitiveness of Ukrainian metallurgical products in the market”, – emphasized in UMP.

They recalled that the mining and metallurgical complex is a major sector of the economy, contributing about 5.7% to the country’s GDP, which provided more than $4 billion in foreign exchange earnings in 2023 and paid more than UAH 25 billion in direct taxes in 2023. The industry creates more than 350 thousand jobs and provides 35% of cargo transportation in Ukrzaliznytsia and sea ports.

In addition, MMC is a leading sector in supporting the Armed Forces of Ukraine: enterprises produce mine trawls, modular shelters and platoon strong points, models of military equipment and armored plates.

UMP predicts that the elimination of the distribution of electrical energy consumer classes will require a significant increase in industrial costs and will make the production of mining and metallurgical complexes unprofitable – the additional costs for in the industry will reach more than 3 billion per year.

“This will lead to a decrease in the volume of production, loss of jobs, a decrease in export potential, a decrease in budget revenues and the impossibility of further assistance to the defense forces of Ukraine. The additional financial burden on the industry is carries the risk of a reduction in investment , will negatively affect GDP and reduce budget revenues, since enterprises in the mining and metal industry are the main tax payers, it will complicate the post-war reconstruction of Ukraine and may lead to the loss of the entire economic sector,” said the UMP.

At the same time, they recalled that a commonly accepted practice in EU countries is the differentiation of tariffs for services for the distribution of electrical energy, and the number of such classes usually exceeds three, while in Ukraine there are only two. Therefore, in the context of European integration processes, Ukraine should improve the system of classification of consumers by voltage classes, and not unify the tariff policy.

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.