Increasing electricity tariffs may be one of the solutions for the renewal of the country’s energy system.
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This was announced on April 19 by Energy Minister German Galushchenko.
The issue is still being discussed. But they don’t write anything now: both 6 UAH/kWh and 8 UAH/kWh. This may be one of the solutions to restore the power system. Because there is no single solution,” he said during a press conference.
The minister also added that it is necessary to change the tariffs in the context of preparing the generation for the new autumn-winter period.
“Economic Truth” reported earlier that the government is preparing a revision of electricity tariffs.
Now in Ukraine there are three tariffs: two “social” for the population and one market for business. Household consumers who use less than 250 kWh per month pay UAH 1.44 per kWh, those who use more – UAH 1.68 per kWh. The price for legal entities exceeds UAH 6 per kWh.
From July 1, 2019 to April 30, 2023, low tariffs for the population are covered by the funds of two state-owned companies – Energoatom and Ukrhydroenergo. They sell electricity to large consumers and companies and, thanks to the income they receive, compensate for the difference between “social” and market tariffs.
Before the war, 70% of consumption in the country came from legal entities paying the market price. After the start of the fighting, the consumption of the population fell by 20%, and business – by 40%. This has led to more than UAH 30 billion remaining in suspension as debt distributed among market participants.
According to the interlocutor of the EP in the Cabinet of Ministers, the mechanism with the division of consumers into two categories now has the most chances: with a monthly consumption of up to 1 thousand kWh and more than this volume. For wealthy people who use more than 1 thousand kWh per month, the establishment of a tariff of 6-6.2 UAH is being discussed.
Consultations are ongoing for the category with consumption up to a thousand kilowatts. An increase of 30-40% is being discussed, but it is possible that everything will be left at the current level.
Recall that Ukraine has resumed the export of electricity to Europe, and this year they plan to export larger volumes than last year.
This is our response to the Russian barbaric attacks, this is proof that the terrorist state has failed in terms of destroying our energy system. And now we hope to reach the export volumes that we had last year. We are planning and will be negotiating to increase them, because today the reserve in the system allows this to be done,” the minister noted.
Since October 11, 2022, given the beginning of massive attacks on energy infrastructure facilities, Ukraine was forced to stop exporting electricity.
The key task is to meet domestic needs for electricity, and if the situation changes, exports may be stopped.
Source: Racurs
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.