Ukraine

Increase in electricity transmission tariffs poses a threat to industry: Ukrmetallurgprom

The National Energy and Utilities Regulatory Commission (NERCP) must provide detailed economic justifications and explanations regarding decision on increasing the electricity transmission tariff by 26%. Such growth can become a serious challenge for Ukrainian enterprises, which are already in difficult conditions. Oleksandr Kalenkov, president of the association “Ukrmetalurgprom”, stated this.

“All Ukrainian enterprises are in survival mode. And we really want to see the economic grounds for such an increase in the tariff for electricity transmission. Because any decision in such a difficult time must be based on detailed economic calculations with an explanation of each figure, and the NCRECP shows only generalized calculations, from which it is impossible to conclude that the tariff increase is really justified and extremely necessary. The calculation is more like stretching the planned costs to a certain figure.”, – noted the expert.

According to Kalenkov, the current calculations of NKREKP are too generalized, and they are not enough to confirm the need for such a significant increase. He emphasized that any decisions in the crisis should be based on transparent and detailed economic data. Instead, the published documents look like “adjustment of planned costs to a certain figure”.

“Enterprises reduce production, the budget does not receive money, and the entire defense capability of our country will suffer from this. That is, the reduction of production volumes and the reduction of export volumes are a direct effect of this increase, because we compete at the expense of cost price.”, – stressed Kalenkov.

Previously, the NCRECP proposed to increase the tariff for electricity transmission for non-household consumers by 25.8%, up to UAH 665.26 per MWh, which caused a significant outcry among businesses and experts.

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