Only an increase in the transmission tariff will not solve the crisis in the electricity market


On June 26, the National Commission for State Regulation of Energy and Utilities (NEURC) made a preliminary decision to increase the tariff for electricity transmission 2.1 times from August 1, 2020. The final decision is expected to be made on July 11. The tariff increase will not affect electricity prices for household and small non-household consumers but will be felt for industry and other consumer groups. The main purpose of this step is to ensure stable revenues for timely payments to producers of electricity from renewable sources.

Tariff and “compensators”

As you know, in previous periods, the “Guaranteed Buyer” was unable to make full and timely payment for generation from RES. As a result, in June 2020, the Guaranteed Buyer’s debt to producers amounted to UAH 14 billion. The reason for this was the insufficient amount of revenues from energy sales and the rapid growth of RES capacity, which increased the amount of required payments.

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