“ArcelorMittal Krivoy Rog” by the end of July, said about the rising cost of electricity consumed on average by 20%. From 1 July in Ukraine, we launched a new model of the wholesale electricity market, resulting in rising prices.
As noted in a press-service of the company, monthly mining and metallurgical company consumes from 300 to 340 million kilowatt-hour depending on production volumes and schedules of the main aggregates. In the company of such cost increases called tangible and noted that this would adversely affect the cost of production of the enterprise.
“The increased costs for electricity amounted to almost 20%. We are talking about the payment of active and reactive power, services for its distribution, transmission and dispatch control. The rise in price of a kilowatt-hour will lead to a further rise in costs. After all, electricity prices rose not only for us but for many of our service providers, raw materials and various products. After some time, we expect the wave of a cumulative effect due to increased electricity costs suppliers will raise the cost of their services and goods that also affect the cost of our products,” – said the head of the Department of procurement administration for the supply of “ArcelorMittal Kryvyi Rih” Oleg Aiko.
He also noted that the government needs to take measures to bring tariffs to the level comparable with global trends. “Today, the European steelmakers pay for electricity and 25% less than Ukrainian, and this worsens the competitiveness of our producers on the world markets,” said Aiko.