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Economy 2020-01-15T04:04:13+02:00
Ukrainian news
Energy Commission To Increase Ukrenergo’s Tariff For Electricity Transmission By 16.6% To 13.58 Kopecks Per kW

Energy Commission To Increase Ukrenergo’s Tariff For Electricity Transmission By 16.6% To 13.58 Kopecks Per kWh From 2020

energy commission, Ukrenergo, tariff

The National Commission on State Regulation of Energy and Utility Services (the Energy Commission) intends to increase the tariff of the Ukrenergo national energy company for the transmission of electric energy by 16.56% or 1.93 kopecks per kWh to 13.58 kopecks per kWh from January 1, 2020.

Ukrenergo has said this in a statement, Ukrainian News Agency reports.

The Commission also intends to set the tariff for electricity dispatching at the level of 1.023 kopecks per kWh, which is by 27.2% or 0.219 kopeck per kWh higher than the current tariff.

At the same time, it is reported that Ukrenergo suggested that the Energy Commission establish a tariff for the transmission of electricity in the amount of 21.52 kopecks per kWh, and for dispatching 1.51 kopecks per kWh.

“Draft Energy Commission’s tariffs do not take into account a number of factors. First of all, the costs of acquiring auxiliary services for regulating the frequency and power and maintaining the reliability parameters of the power system are included in the dispatch tariff at the level of UAH 1.3 billion. This is 1.5 times less than the necessary calculated by Ukrenergo (UAH 2.04 billion)," the company said.

Besides, Ukrenergo reported that the cost of fulfilling special obligations to compensate for the green transmission tariff was accounted at the level of UAH 10.2 billion, which is significantly lower than the offer of Ukrenergo (UAH 19.38 billion).

Also, when calculating tariffs, Ukrenergo’s expenses for paying dividends and income tax in the amount of UAH 2.8 billion for 2019 and 2020 were not taken into account.

"The adopted draft tariffs do not fully meet the needs of the company and bear risks for the financial stability of the transmission system operator, the possibility of fulfilling the special obligations assigned to Ukrenergo and the development of the market in general.

Therefore, in the future, after the approval of the agreed draft tariffs, we will contact the Energy Commission on adjusting the tariffs of the company to ensure reliable and safe operation of the energy system, as well as the effective functioning of the electricity market," the statement summed up.

As Ukrainian News Agency earlier reported, in August, the Energy Commission reduced the tariff of the Ukrenergo national energy company for electric power transmission 2.7 times or 19.56 kopecks per kWh to 11.65 kopecks per kWh.

Ukrenergo operates the Ukrainian power distribution system and transmits electricity from power stations to the networks of power distribution companies.

Besides, the company has the function of organizing auctions for access to international power transmission lines for exporting electricity.

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