‘Electricity tariffs for the population of Ukraine will increase from June 1’, – Chairman of the Union of Consumers of Municipal Services

During the heating season, electricity tariffs will not increase in Ukraine. However, after the season, prices for electricity may double and reach 6 hryvnias by the end of the year.

This was stated by housing and communal services expert Oleg Popenko.

According to the expert, in 2024, electricity prices may double. By the end of the year, the cost could reach 6 hryvnias.

“As far as I know, in 2024, it is planned that electricity prices will increase twice a year. That is, one increase will be approximately on May 1 – June 1, and the second one on October 1 or November 1. As practice shows, last year tariffs were raised for the first time on June 1, and then on November 1, they decided not to raise them. However, this year there are plans for such tariff increases,” said Popenko.

Currently, the cost of electricity is 2.64 hryvnias per kilowatt-hour. According to the expert’s forecasts, tariffs will increase as follows:

• at the first stage – to the level of 3.5-4 hryvnias,
• the second increase – up to 5.5-6 hryvnias.

According to Popenko, the actual cost of electricity for the population is significantly lower than what other experts claim. He explained that various factors need to be taken into account.

“If you calculate the approximate cost, it turns out to be somewhere around 4.5 hryvnias. Again, plus or minus, one needs to take into account the annual inflation, changes in coal prices on the market, the increase in the nuclear component, fuel prices. Therefore, it can fluctuate, but as of today, the approximate cost of electricity is somewhere up to 4.5 hryvnias,” he said.

This amount includes calculations by regional energy companies, , according to the expert, they also need to be revised.

“As practice shows, the regulator accepts calculations with figures that are quite inflated. By inflated, I mean, for example, the length of power lines stated in the documents of regional energy companies, which make up the cost. So, I haven’t seen the real figures of the length of power lines, and even more so, I haven’t seen acceptance and transfer acts,” explained the specialist.

Therefore, a full audit of electricity pricing is needed first; then the cost of electricity will not be 4.5 hryvnias but possibly 3.5-4 hryvnias.

The expert highlighted three components on which the cost of electricity depends:

1. the cost of generation (nuclear power plants, hydroelectric power stations, thermal power stations, imports, etc.);
2. the cost of services of the distribution system operator, i.e., regional energy companies;
3. the cost of transmission system operator services, i.e., Ukrenergo.

It is worth reminding that electricity supply disconnections to debtors have already begun in Ukraine. During the moratorium on the termination of electricity supply to residential consumers, the total amount of unpaid debts of Yasno customers for electricity reached 3.6 billion hryvnias.

Also, the National Commission for State Regulation of Energy and Utilities (NKREKU) has published new proposals for tariffs for water supply and wastewater services submitted by some licensees. These are water supply companies located in western regions.