Interpipe announces an increase in electricity prices after imports restriction

The Ukrainian industrial company Interpipe announced a sharp increase in electricity prices on the day-ahead market (DAM) after imports restrictions in winter, BusinessCensor reports.

The company says electricity imports have fueled competition among suppliers, and prices on DAM have fallen to fair levels after skyrocketing in July-August last year.

“However, from mid-December, NPC Ukrenergo began a gradual restriction of electricity imports, eventually reducing it to zero. As a result, in the first 10 days of January 2020, the weighted average price on DAM increased by 33% compared to the same period in December and by 11% compared to December as a whole”, the report said.

The company also talks about the problem of increasing the tariff for the transportation of electricity from January 1, 2020 by 33%.

“We do not import electricity, we buy it in Ukraine, but we consider it important that there is competition in the market, including due to imports. Naturally, rising prices negatively affect not only the competitiveness of industry, but also the entire economy of Ukraine”, commented Denys Morozov, director of economics and finance at Interpipe.

Interpipe is a Ukrainian industrial company, a manufacturer of steel pipes and railway wheels. The company's products are supplied to more than 80 countries through a network of trading offices located in key markets of the CIS, the Middle East, North America and Europe. Sales of railway products are carried out under the brand KLW.

Earlier it was reported that the company had announced the creation of artificial shortages by electricity suppliers.

Tags: The Cabinet of Ministers, contracts, NPP, tariffs, legislation, electricity, energy market, Ukrenergo, ETL, RF, electricity market, foreign affairs, import, The Verkhovna Rada, price, volumes, power system balance

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