Nikopol Ferroalloy Plant plans to appeal against the new tariffs of Ukrenergo

JSC Nikopol Ferroalloy Plant plans to appeal to the court about the decisions of the National Energy and Utilities Regulatory Commission, which recently approved transmission and dispatch tariffs for the system operator SOE NPC Ukrenergo, which will become effective from August 1, and which take into account the costs associated with the operation of a new electricity market. Expro reports about it.

“We know that the tariff has been reduced by 10% since August 1 (for transmission services for Ukrenergo – ed.), it’s just a bone thrown. We will certainly be suing”, said Volodymyr Kutsyn, CEO.

According to him, Nikopol Plant is not against the reform of the electricity market, but considers it unacceptable to increase the tariff for Ukrenergo by 600%.

The 25% increase in the electricity price for the plant led to the fact that the cost of paying for the energy carrier reached 122 million UAH per month, which exceeds the wage fund, which is 100 million UAH, he said.  

Recently, the court suspended the resolution of the National Regulatory Commission No.954 and No.955 dated June 7, 2019, which set the tariffs for NPC Ukrenergo for electricity transmission and dispatch control services for the second half of the year. In response, representatives of Ukrenergo stated that the court’s decision made it impossible for the new market to operate, as the new tariffs include the cost of paying for electricity produced from renewable energy sources, as well as balancing and auxiliary services.

On July 3, the National Regulatory Commission stated that it did not agree with the decision of the court and filed an appeal.

On July 12, the Regulator approved the tariff for electricity transmission services by main grids for the 2nd half of 2019 for the state enterprise NPC Ukrenergo in the amount of 312.14 UAH /MWh (excluding VAT), which is 10.2% less than that approved on June 7 (347.43 UAH/MWh).

Tags: The Cabinet of Ministers, contracts, tariffs, court, legislation, electricity, NEURC, Ukrenergo, electricity market

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