NEURC agrees to increase tariffs for DSOs from Jan 1 by average of 30-60%

KYIV. Nov 18 (Interfax-Ukraine) – The National Energy and Utilities Regulatory Commission of Ukraine (NEURC) at a meeting on Friday approved an increase in electricity distribution tariffs for 26 distribution system operators (DSOs) by an average of 30-60% from January 1, 2023.

This is already the third scenario for a possible revision of tariffs for DSOs, which the regulator agreed on this autumn. Initially, it was planned to revise the tariffs for DSOs from December 1, 2022.

The final tariffs will be adjusted and approved after additional discussions of the interested parties.

As follows from the discussions on the expected increase in tariffs for DSOs within the NEURC, the key reasons for the tariff growth are the fall in the level of payment for electricity during the war, the upcoming increase in tariffs for electricity transmission and dispatching for NPC Ukrenergo, as well as the expected growth electricity prices on the spot market, which will require compensation for the shortfall in working capital of DSOs, in particular for the possibility of purchasing electricity in order to compensate for technological losses.

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