A critical situation has developed at ArcelorMittal Kryvyi Rih due to excessively high electricity tariffs. Rudana reports this.
For almost the entire first half of the year, electricity prices in Ukraine were the highest in Europe. And in July they rose even more: taking into account the cost of transportation and distribution, the price per megawatt was USD 150. Due to these conditions, the company's net loss in five months reached about UAH 3.8 billion, explained the company's CEO Mauro Longobardo.
In addition to all this, from August 1, the National Commission for the Regulation of Energy and Utilities of Ukraine increased price caps for electricity for businesses in the evening hours. The changes provide for an increase in the maximum prices on the day-ahead and intraday markets to UAH 15,000 per MWh, and on the balancing market to UAH 16,000 per MWh, which is a significant increase compared to the previous figures.
Such a decision by the National Commission for the Regulation of Energy and Power Generation and Energy Services of Ukraine will force ArcelorMittal Kryvyi Rih, which consumes 250 MWh, to spend additional money on electricity. It is predicted that additional annual costs will amount to up to UAH 3 billion. And the company has already been operating at a loss for the fourth year in a row.
"The situation turned out to be much worse than predicted. In April, electricity prices turned out to be 40-50% higher than what we planned at the beginning of the year. And so our electricity payments have washed away all the money we had put in the business plan, so we have no money to invest and pay contractors," Longobardo summed up.
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