FEU opposes the increase in current electricity distribution tariffs for enterprises

The Federation of Employers of Ukraine (FEU) has opposed the increase in current electricity distribution tariffs for enterprises

According to the Federation, the regulator, the National Commission for State Regulation in Energy and Utilities (NEURC), has provided for an increase in electricity distribution tariffs for Mykolaivoblenergo, Sumyoblenergo, and PJSC PEEM CEK from October 1, 2025, to compensate for lost revenue due to a decrease in distribution volumes in 2023.

At the same time, for Zaporizhzhiaoblenergo and Kharkivoblenergo, a 50% return of the adjustment amounts for 2021-2023 is planned.

«In fact, this means an increase in tariffs in the regions that suffer most from constant enemy attacks. Despite the difficult conditions, companies there continue to operate, supporting the economy and local communities. At the same time, the new tariff burden could be critical for them,» the FEU noted.

The tariff increase approved by the regulator, the federation emphasized, will entail additional costs for those companies that are still operating in the frontline regions. For example, for enterprises in the Zaporizhzhia region, they will exceed UAH 1.5 billion.

«Already today, a number of large enterprises in the region are suspending production, citing the rise in the cost of energy resources, in particular electricity distribution tariffs, as the main reason. This leads to staff reductions: each of these enterprises employed more than a thousand people,» the statement said.

The suspension of production will also mean a reduction in revenues to the state and local budgets. Adjacent enterprises involved in production chains will also feel the negative effects.

The Federation emphasized that in the current conditions, tariff policy should take into account not only the balance of energy companies’ costs, but also the stability of business and the economy as a whole.

The FEU believes that in the long term, the decision to raise tariffs will also lead to a reduction in electricity consumption and an even greater increase in tariffs for distribution services. Compensation for energy companies’ losses can only be provided through long-term deferrals to avoid a sharp financial blow to industrial consumers.

As an alternative, the FEU proposes financing the relevant costs through state programs for the restoration of energy infrastructure, international financial assistance, and other special mechanisms that do not shift the burden to consumers.

It should be recalled that at the end of August this year, the NEURC decided to raise electricity distribution tariffs for a number of distribution system operators. The increase ranges from a minimum of 0.6% to a maximum of 48.6%. The new tariffs came into effect on September 1. A separate decision approved an increase in tariffs from October 1 for another group of regional electricity distribution companies.

In early August, the FEU warned against this step, appealing to the regulator and relevant ministries. They noted that this would lead to additional costs for businesses of more than UAH 15 billion and would hit domestic industry.