In Ukraine, there may be a rise in electricity tariffs for households of approximately 20% in the coming months. This assessment was made by the head of the board of the Ukrainian Renewable Energy Association, Stanislav Ignatiev.
This is reported by Finway
Political Factors and International Partners’ Demands
According to the expert, the adjustment of tariffs largely depends on the political will of the government and the fulfillment of obligations to international creditors. Ukraine’s partners insist on gradually bringing electricity prices to market levels, which entails an annual increase of about 25% over the coming years.
“There is a condition — to raise the tariff for households by approximately 25% each year over the next few years,” the expert noted.
Current Situation and Prospects for Increases
Currently, the retail tariff for households remains below market rates and is subsidized by state companies. Stanislav Ignatiev explained that the difference between the wholesale electricity price and the tariff for consumers is covered by Energoatom and hydroelectric power stations. According to his estimates, the first increase in tariffs of about 20% may occur as early as this summer.
In Ignatiev’s opinion, the strategic solution to the tariff formation issue lies in the development of renewable energy, which is currently the most economically advantageous for the country.