Tariff “Ukrenergo” for the transmission of electricity since August, will increase by 54.6%

Тариф «Укрэнерго» на передачу электроэнергии с августа увеличится на 54,6%

The national Commission carrying out regulation in the energy and utilities (NKREKU) 1 August 2020, will increase the rate of NEK “Ukrenergo” for the transmission of electricity by 54.6% from 155,4 UAH/MWh to 240,23 UAH/MWh (excluding VAT).

The relevant Commission decision was adopted at the meeting on Saturday to ensure the availability of funds from the company to repay the debt to producers of electricity from renewable sources (via GP “Guaranteed buyer”).

The draft decision to the meeting, on 11 July included the growth rate to 2.1 times – to UAH 327,97/MWh, and the initial proposal of NEK was to bring the rate up to 604,51 UAH/MW-h the Opportunity to reduce the tariff came through the NEK plans to take loan funds from international financial institutions (IFIs), which will reduce once the load on consumers and simultaneously pay off debts in accordance with the agreement signed between the government of Ukraine and “green” Memorandum.

At the same time, at the request of business representatives and lawmakers, the Commission decided to abandon the double growth rate. Following the meeting adjourn the meeting, Governor Valery Tarasyuk said that “Ukrenergo” will hold further talks with MFIs to increase the amount of attracted loan funds.

According to the head of NEK Vladimir Kudrycka, banks will be willing to discuss a revision of the parameters of funding, subject to the adoption by the Verkhovna Rada of the bills that will balance the situation on the market, and changing the Cabinet models, the imposition of special obligations.

As reported, “Ukrenergo” is planning to attract from the European Bank for reconstruction and development EUR128 million (3.8 billion), the European investment Bank, the EUR92 million (UAH 2.8 bn). In particular, the EIB funds were saved by the results of the projects of construction of OHL 750 kV “Rivne NPP – Kyivska” and the transmission line 750 kV “Zaporizhzhya NPP – Kakhovska”.

To repay debts to green generation will also be funded by the company from the sale of interstate sections in the amount of UAH 1.4 billion, which will be possible after the adoption under consideration in the Verkhovna Rada of the bill. Also, the debt repayment planned for the introduction of excise duty on electricity for manufacturers resource from RES at a minimum of 3.2%, which would generate over $ 1.5 billion per year.

The Verkhovna Rada
The government