In Ukraine, an increase in electricity tariffs for residential consumers of approximately 20% is expected this summer. This forecast was announced by the head of the Ukrainian Renewable Energy Association, Stanislav Ignatiev.
This is reported by Finway
International Obligations and Political Decisions
According to the expert, the pace of tariff adjustments is determined by the political decisions of the country’s leadership and obligations to international creditors. International partners insist on gradually aligning tariffs with market levels, which implies an annual increase in electricity prices for households of about 25% in the coming years.
“This is a political issue, a matter of political will. At the same time, there are demands from our international creditors,” noted Ignatiev.
Current Tariff Policy and Energy Development Prospects
Currently, tariffs for households remain below market levels, and the difference between the actual wholesale price and the consumer price is covered by state energy companies, including Energoatom and hydropower enterprises. The first changes may occur as early as this summer, when the tariff is likely to increase by 20%.
Ignatiev emphasized the need for the development of renewable energy as a strategic solution to the problem: the construction of solar and wind power plants may be more beneficial than restoring coal or developing gas generation. According to the expert’s estimates, new solar power plants could pay off within two years.
To attract investment in new generation, the state must guarantee transparent rules and an open market.