Industrialists against any rise in electricity tariffs, otherwise it will result in UAH 4.5-5 bln extra costs

KYIV. Oct 31 (Interfax-Ukraine) – Representatives of the industrial complex of Ukraine criticized the proposal of Ukrenergo to increase tariffs for electricity transmission and dispatching by 84% and 234%, respectively, in 2023.

During a working meeting of the Federation of Employers of Ukraine on raising electricity tariffs held on Monday, it was proposed not to change the tariffs, otherwise this would lead to additional multibillion expenses and even the shutdown of some industries.

President of Ukrmetalurgprom Oleksandr Kalenkov believes that if Ukrenergo’s proposal is accepted, the additional costs of the mining and metallurgical complex in 2023 will amount to UAH 4.5-5 billion.

"Now the capacities of the industry enterprises are loaded at 20% of the pre-war level, metallurgical plants – at 15%, plants operate with losses, they do not cover even 70% of variable costs," he said.

According to him, now the cost of steel products is suffering greatly due to the increase in the cost of logistics and the blockade of seaports.

"We are absolutely not talking about any profit or break-even. Therefore, any increase in tariffs is an additional burden on metallurgists, which will lead to job losses, people will lose income, and the state will lose taxes," Kalenkov stated, adding that now the price of an erroneous state decision is growing very much.

In turn, Executive Director of the Ukrcement association Liudmyla Kripka noted that with such an increase in electricity tariffs, cement enterprises simply will not survive.

"Ukrenergo’s proposal needs to be reviewed, since most of our plants can no longer work," she said.

Ihor Holchenko, the vice president of the Union of Chemists, noted that in the event of an increase in industrial tariffs, compensators are needed.

"There will be an additional burden on enterprises, there will be a blow to the cost of production and labor collectives, which we are now trying to save. Taking working capital is not a reasonable way out of the situation, some kind of compensators are needed, and the problem needs to be brought to the level of the government of Ukraine," he believes.

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