ACTUAL

A single price for electricity will lead to problems in the energy market

The Ministry of Energy and NKREKP are initiating the unification of the electricity distribution tariff, which, according to the ex-Minister of Energy Olga Buslavets, will lead to direct subsidies to consumers at the expense of large enterprises and will create new problems on the energy market.

She noted that such changes could lead to the shutdown of enterprises and the growth of social tension. This issue was discussed during the meeting on the initiative of the National Energy and Mineral Resources Commission to cancel the division of electricity consumers into 1st and 2nd voltage classes, organized by the Federation of Employers.

"The initiative to reduce the burden on state enterprises is a direct subsidy of some at the expense of others. That is, even in the new model, we will not go away from subsidizing. We are all inventing something, some new problems, in this already distorted market," Buslavets noted.

Buslavets emphasized that combining the two tariffs would be a critical mistake that would harm industry and worsen the economic crisis in Ukraine. "We live in conditions of war. And now we are talking about the destruction of our economy in the agreement of only one company, which did not have enough money from the increase in tariffs for the population. First of all, the authorities need to think about how to save the hen that lays the golden eggs - in the form of taxes, jobs and foreign exchange earnings for the country," the ex-minister emphasized.

According to her, the fact that the industry in Ukraine is still trying to work, despite the fact that the cost of electricity has recently increased critically, is already a miracle. But the unification of the distribution tariff for energy-intensive enterprises will be the death knell.

"Now the government and the regulator must create favorable conditions for business and industrial development. Yes, we are still being helped with funds. But we must first of all count on our own economy. And large industry is a large sector on which this economy relies. And if with such decisions you want to lead to economic problems, social problems and the shutdown of enterprises, then the goal will be achieved," Buslavets summarized.

Andrian Prokip, an expert in the "Energy" program of the analytical center Ukrainian Institute for the Future, also expressed a critical position regarding the unification of the tariff. He noted that this initiative contradicts the principles of European policy and regulation, which Ukraine is obliged to implement, and the sound logic of economically justified tariff formation.

We will remind you that on July 17, the NKRECP planned to review the draft resolution "On approval of changes to the Procedure for setting (forming) tariffs for electricity distribution services" (amendments to the resolution of the NKRECP dated 05.10.2018 No. 1175). But due to business criticism and the lack of economic justification, consideration of this decision was postponed.

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