NEURC approves increase in Ukrenergo tariff for electricity transmission by 1.5 times over 2023, for dispatching by 4.5 times

KYIV. Nov 18 (Interfax-Ukraine) – The National Energy and Utilities Regulatory Commission (NEURC) approved draft resolutions on the approval of NPC Ukrenergo’s tariffs for transmission and dispatching over 2023.

The decision was made at a meeting of the regulator on Friday. It will be published on the regulator’s website for comments and suggestions, after analysis of which the final decision will be made.

Thus, the transmission tariff was approved in the amount of UAH 522.46/MWh, while the tariff over 2022 is UAH 345.64/MWh (hereinafter without VAT), the dispatching tariff is UAH 283.18/MWh (now 62.13 UAH/MWh). In addition, the transmission tariff for green electrometallurgy enterprises over 2023 was approved at UAH 286.29/MWh (the tariff over 2022 was not set).

The commission, in the justifications for the draft resolutions, said the calculations were based on the proposals of Ukrenergo, with some adjustment, which provide, in particular, for the inflationary component, the increase in the price of electricity for the company’s technological costs, the need to resolve the issue of settlements with RES tariff for dispatching, an increase in the amount of funds for the purchase of an additional service on the basis of the compensation reserve, which involves the operation of gas-fired thermal generation in the open season and is paid at a special tariff.

Head of the commission Kostiantyn Uschapovsky said its task is to make a balanced decision, but given the critical situation in the energy system due to the shelling of Russian aggressors, the energy sector needs support more than ever.

Representatives of the metallurgical and chemical industries spoke out against the increase in tariffs, since this is an additional burden on enterprises, which can lead to their complete blackout. In particular, Oleh Skachko, a representative of Zaporizhia Ferroalloy Plant, noted that in the event of an increase in the transmission tariff in this amount, the enterprise, which is also experiencing difficulties due to the war, will have to look for an additional UAH 300 million to pay for it.

For their part, the leaders of the relevant RES associations during the discussion said this time the draft transmission tariff, from which feed-in tariffs are compensated, is more balanced than before, however, it does not take into account all the necessary costs for financing renewable energy, including the repayment of accumulated debts.

"We welcome the decision of NEURC on the tariff. You are doing everything right, but in any case, you need to think not only about today, but also about the future. We constantly need to resolve the situation, close debts to renewable energy and not accumulate new ones," head of the board of the Ukrainian Wind Energy Association Andriy Konechenkov said.

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