Ukraine needs to increase the tariff for electricity – Rohozin

Raising the electricity tariff, imposing PSOs, and ensuring a full payment for electricity from debtors are the main errors of the electricity market that need to be solved.

This was discussed in a panel discussion about the features of the new model of the electricity market functioning, said Vice President of the First Energy Association of Ukraine Oleksandr Rohozin, Kosatka.Media reports.

“We need to increase tariffs for the population. Step by step. Without the shock tariffs increase for industry, the market is already unbalanced”, Rohozin said.

Another problem requiring immediate solution, he emphasized – 100% payment of bills for electricity.

“In order to avoid social problems in some regions, and to prevent the transmission system operator from going bankrupt, we must solve this problem. This can be done quite simply – for example, through special budget programs. These are state and budget enterprises. The state, solve your problems”, the expert stated.

Rohozin also considers it “weird” to impose PSOs.

“Special obligations were allegedly made in the interests of the population. But at the same time, we also, sell (electricity – ed.) at subsidized prices to the energy distribution system operators and transmission system operators for losses, demotivating them from saving losses. And at the same time we subsidize the industry at the expense of Energoatom and Ukrhydroenergo. Strange, hybrid PSO”, he said.

According to Rohozin, it is necessary to solve the problems of excise duty.

“2-3%, no so much. In fact, it is a lot, and it falls on the price in an unnatural way. And it takes money from the whole generation”, he said.

Rohozin also considers the dispatch rate unnecessary.

“Generation does not pay the dispatching tariff nowhere in Europe. Because it affects market prices. And when markets merge – prices kill their own producer, this is not competitive”, he said.

Tags: tariffs, electricity, electricity market

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