War and crisis: will the electricity price in Ukraine change in 2023?

In Ukraine, they will not yet raise electricity prices for non-residential consumers due to changes in the market situation. This was reported by the publication “Interfax-Ukraine”.

It was noted that at a meeting of the commission that handles state regulation in the energy and utilities (NEURC) fields on February 21, the issue of revising marginal prices in the “day ahead”, intraday and balancing markets was removed. from the agenda. As the head of NEURC Konstantin Ushchapovsky pointed out, the information provided to the commission for the price review would not have been very relevant at the time the decision was approved.

At the same time, to justify the relevant decision on the NEURC website, the increase in marginal prices had to be considered in connection with the expansion of the circle of electricity producers; population at the expense of companies producing thermal energy.

To do this, the Council of Ministers had to make the appropriate changes in the Resolution No. 483 of June 5, 2019 on the Adoption of the “Regulation Concerning the Placing of Special Duties (SSO) for Electricity Market Participants in the Operation of the Electricity Market for the Public Interest”. However, the government extended the validity of the document with its decision of 28 October 2022, but did not amend the rules for imposing special obligations on power generating companies of thermal power plants (TPPs). .

The state-owned company Energoatom also warned the commission that if the payment distribution mechanism for SVO is maintained until March 31, 2023 and marginal electricity prices are increased, this could worsen Energoatom’s balance of payments and limit the fulfillment of obligations. to the population.

Electricity tariffs for the population: how much Ukrainians pay now

The cost of electricity for Ukrainians was approved by a corresponding decision of the Cabinet of Ministers in October 2021. As of February 2023, the rates are as follows:

• 1.44 UAH per 1 kWh (including VAT) – for households consuming up to 250 kWh (inclusive) per month;
• UAH 1.68 per 1 kWh (including VAT) for households consuming more than 250 kWh (inclusive) per month.

Collective consumers and dormitories pay UAH 1.68 per 1 kWh (including VAT) for electricity.

Recall that the government plans to revise electricity prices and reform the current electricity market as early as 2023, as Yuriy Boyko, adviser to the chairman of the Cabinet of Ministers, said on February 20. After that, electricity tariffs for consumers will be raised to market prices.

Focus also said that Ukrainian authorities are considering various options for reforming the utilities sector and subsidy system, where tariffs on housing and communal services for Ukrainians could increase.