NEURC increases the tariff for electricity transmission for 2022

The National Energy and Utilities Regulatory Commission (NEURC) approved NPC Ukrenergo’s tariff for the transmission of electricity in 2022 of UAH 345.64/MWh (excluding VAT), which is 17.6% higher than in 2021 (UAH 293.93/MWh).

The regulator decided on it at a meeting on Wednesday evening, Interfax-Ukraine reports.

Originally, the regulator approved the draft decision on the transmission tariff for 2022 at UAH 352.38/MW (excluding VAT), however, submitted the corrected tariff of UAH 356.9/MWh to the meeting on December 1. During the meeting, NEURC revised the tariff, taking into account the clarification of the costs of electricity losses.

The regulator did not include the payment of 20% of renewable electricity into the transmission tariff, even though MFOs, MPs, business and specialized associations and chambers of commerce vehemently insisted on this.

“We act within the legislation. If it changes, and we will change the tariff,” the head of NEURC Valerii Tarasiuk said.

According to the changes of 2019 to the law on alternative energy sources, 20% of the cost of renewable electricity must be paid from the state budget, but neither the law on the state budget for 2021 nor its draft for 2022 provides for such costs.

NPC Ukrenergo offered the tariff at the level of UAH 458.83/MWh.

To recap, NEURC suggested increasing the electricity transmission tariff by almost 20% at the meeting on November 10.

As reported, Ukraine promised to fully repay the debt to renewable energy sources, and pay on time from 2022.

Tags: tariffs, legislation, NEURC, IMF, Ukrenergo, feed-in tariff, electricity market, debt, Ukraine, price, infrastructure, electricity transmission

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