Electricity for non-domestic customers might be increased by 40-50% - the Energy and Utilities the National Regulatory Commission

The implementation of the government-approved order of compensation for the difference between the price of electricity for the population and its market price in the new model of the energy market will lead to an increase in prices for non-residential consumers by 40-50%. It was reported by a government source to the Interfax-Ukraine agency.

According to the source, Oksana Krivenko (the Head of the Energy and Utilities the National Regulatory Commission) sent a letter with appropriate reservations and proposals to the Cabinet of Ministers and the Ministry of Energy and Coal Mining.

On May 22, the government approved the procedure for imposing special obligations on electricity supply for the needs of population until December 31, 2020, developed by the Ministry of Energy and Coal Mining. Special obligations are assigned to NNEGC Energoatom, JSC Ukrhydroenergo (by their obligation to sell electricity according to certain rules) and NPC Ukrenergo (by including compensation amounts in the dispatching tariff).

The Regulator believes that the document contains critical disadvantages, and one of the consequences of launching a new electricity market with imposition of special obligations mechanism will be an increase in prices for non-domestic customers by 40-50%.

In turn, the Energy and Utilities the National Regulatory Commission provided suggestions on the imposition of special obligations on market participants. More specifically:

- sell at least 80% of NPPs’ electricity and at least 50% of HPP’s electricity at electronic auctions at a fixed price;

- universal service supplier and network operators must purchase a certain amount of electricity at electronic auctions;

- NPPs have to order universal service supplier and pay for the service to ensure the availability of electricity for domestic consumers.

Source: interfax

Tags: The Cabinet of Ministers, contracts, NNEGC "Energoatom", legislation, electricity, NEURC, The Minystry of Energy and Coal Mining

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