Ukrenergo’s electricity transmission tariff will increase in three stages in 2023

The National Energy and Utilities Regulatory Commission (NEURC) has approved the increase in the tariff of Ukrenergo for the transmission of electricity in three stages during 2023. Interfax-Ukraine reports about it.

The electricity transmission tariff will increase (without VAT):

• from January 1, 2023, – by 10%, from the current 345.64 UAH/MWh to 380.28 UAH/MWh,
• from April 1 – by another 13.1% –up to UAH 430.25/MWh,
• from July 1 – by another 12.7% – up to UAH 485.1/MWh.

The national regulator also predicted a three-stage increase in the Ukrenergo dispatch tariff:

• from January 1, 2023, – 9.9%, from the current 62.13 UAH/MWh to 68.28 UAH/MWh,
• from April 1 – by another 18.4%, up to UAH 80.87/MWh,
• from July 1 – by another 18.1%, up to UAH 95.54/MWh.

The penultimate version of the draft resolution provided for a one-time increase in the tariff for transmission from January 1, 2023, by 28.9% compared to the current one – to 445.4 UAH/MWh, for dispatching – by 36.7%, to 84.91 UAH/MWh.

The expediency of a gradual, rather than one-time, increase in tariffs was justified by the possible negative consequences for consumers in wartime conditions.

At the same time, the head of Ukrenergo, Volodymyr Kudrytsky, noted that it is currently difficult to analyze the impact of a step-by-step approach on the power company’s ability to carry out operational and technological management of the network operation system.

According to him, the proposed procedure for increasing the tariff for transmission and dispatching does not correspond to the time structure of the expenditure of funds, which is expected in 2023. In particular, at the beginning of the year, very high costs for auxiliary services and restoration of destroyed networks are expected.

As NEURC reported, from January 1, 2023, the final price of electricity for non-household consumers will increase by an average of 15 coins/kWh, for industrial energy-intensive consumers – by an average of 4 coins/kWh due to an increase in electricity transmission and distribution tariffs, control rooms services of Ukrenergo, services of universal service providers for the next year.

The adjustment of tariffs took place primarily due to the provision of funds for power grid operators for the emergency restoration of damaged facilities, the creation of an emergency stock of equipment, and the purchase of the necessary goods and services.

As GMK Center reported earlier, European prices for electricity at the end of November and at the beginning of December 2022, increased against the background of a decrease in wind energy production capacities in most of northern Europe, a reduction in energy supplies from nuclear power plants in France. As a result of the cold weather, the demand for gas also increased.