"The National Commission for State Regulation of Energy and Public Utilities (NERC) has approved a draft tariff for electricity transmission services at 665.27 UAH/MWh, representing a 26% increase. The Federation of Employers of Ukraine considers such hikes to be perilous for the country's economy, as the rise in these tariffs constitutes an additional burden for Ukrainian enterprises, which could lead to catastrophic consequences in the context of war. For instance, increasing just one tariff – for electricity transmission services – will raise energy costs by more than 13 billion UAH, reducing the competitiveness of products," the statement reads.
The situation is further complicated by the fact that many Ukrainian enterprises are incurring significant losses due to the destruction of infrastructure and production capacities amid the war, according to the authors. The rise in tariffs will lead to a decrease in production, adversely affecting foreign exchange and tax revenues amid a budget deficit, the Federation of Employers of Ukraine emphasized. Some expenses included in the NERC tariff projects are excessive and need to be adjusted, they believe.
"The draft tariff for dispatching services includes costs for ancillary services amounting to 11.4 billion UAH, but an analysis of data for 2024 shows that actual expenses are significantly lower. Therefore, these costs can be substantially reduced. Thus, we propose to optimize the tariff structure for 2025: set the tariff for electricity transmission services at no more than 530 UAH/MWh and the dispatching tariff at no more than 60 UAH/MWh," the Federation of Employers of Ukraine underscored.