The regulator should introduce a moratorium on increasing tariffs to stabilize the situation in the metallurgical and coke industry, according to expert associations.
The Ukrainian Association of Manufacturers of Ferroalloys and Other Electrometallurgical Products (UkrFa), as well as the Ukrkoks Association, opposed the tariff increase for electricity transmission proposed by the National Commission for Regulation of Energy and Utilities (NCREKU). This was stated in letters from associations to officials and regulators, UNIAN reported on Monday, December 9.
As you know, on November 13, NEURC adopted a draft resolution that provides for an increase in the tariff for electricity transmission services by 26% from 2025, from 528.57 to 665.26 UAH/MWh. If the draft tariff is adopted, the annual cost of Ukrainian metallurgists will increase by more than UAH 1.6 billion, according to a letter from the UkrFa association.
“Due to the result of the war, logistics restrictions and a decrease in global demand and prices for mining and metallurgical products, the Ukrainian metallurgical industry is in a critical condition. And during the energy crisis caused of war, the above changes for Domestic metallurgical enterprises will lead to massive layoffs and in general the risk of losing a strategically important industry, especially since some of the member enterprises of the Ukrainian Association of Ferroalloy Producers is located in the combat zone, and mining and processing plants. The plants are not working now, and all are located in the territories adjacent to the temporarily occupied territories,” the association notes in its appeal to the Ministry of Economy, NEURC, Ukrenergo, Ministry of Energy and other related structures.
Ukrkoks noted that if the corresponding decision is approved, the losses of the coke-chemical enterprise will reach 1.3 billion hryvnias per year, and the coke-chemical enterprises themselves “do not have enough financial margin of safety to cover the growing cost of all resources, especially the electricity transmission tariff.” .
“Considering the war, the energy and logistics crisis, and the difficult market conditions for the industry, the tariff increase will have extremely negative consequences for the Ukrainian coke industry,” Ukrkoks said in a letter to the National Regulatory Commission for Energy and the Energy Regulatory Commission.
The association believes that the regulator should introduce a moratorium on increasing tariffs for electricity transmission until the situation in the metallurgical and coke industry stabilizes.
Earlier, the Union of Building Materials Manufacturers warned that the increase in the tariff for electricity transmission will lead to an increase in prices for building materials, which will worsen the purchasing power of Ukrainians.
Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.