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Electricity prices declined, but too early to relax - ArcelorMittal Krivoy Rog

Ukraine

steel industry is going through hard times due to a significant fall in prices in these circumstances, the cost of steel products becomes more critical, the company said Lakshmi Mittal.

Electricity prices declined, but too early to relax - ArcelorMittal Krivoy Rog

Measures of the government of Ukraine has helped to reduce electricity tariffs for industry – note the "ArcelorMittal Kryvyi Rih".

"the Ukrainian Government has kept its promise by November, electricity tariffs for industry returned to the June level," said the head of the Department of procurement administration for the supply of "ArcelorMittal Kryvyi Rih" Oleg Aiko.

we will Remind that in July, after entering a new model of the wholesale energy market payments for electricity from "ArcelorMittal Krivoy Rog" and other industrial enterprises increased by nearly 20%, which caused the shaft of criticism of the authorities. In mid-August, Vladimir Zelensky initiated the meeting in the President's Office with the participation of all stakeholders, including Industrialists. "We were assured that some measures will help you to eliminate such sharp jump of the prices, and in October the industry will be able to feel it. Now in its payments, we see that the government heard us," - said Oleg Aiko.

So, the tariff for distribution of electricity since August has been reduced from 62.55 to 49.76 UAH/MW hour transfer with 347,43 to 311,14 UAH/MW hour and nearly two and a half times – up to UAH 116,54/MW hour. Price on day-ahead market (the market) is also gradually decreased. If in July – October it ranged from an average of 1570 to 1630 UAH/MW hour, for 25 days in November had fallen to 1328,36 UAH/MW hour. "Thanks to this lowering of price distortions in the energy market were eliminated," - stated in the administration of supply "ArcelorMittal Kryvyi Rih".

However, to relax the real sector earlier, according to Oleg Aiko. The national Commission for regulation in energy and utilities (NKREKU) approved for discussion the draft tariffs the NEC "Ukrenergo" for the year 2020. We are talking about the increase since the first of January of tariffs for transmission of electricity from 116,54 to 131,71 UAH/MW hour (+13%), and dispatching from 8.03 to 9.94 UAH/MW hour (23,6%).

"I would Like to when discussing this project was also taken into account the opinion of the industrial enterprises. First of all, energy-intensive and export-oriented industries, which include metallurgy. Now she is going through hard times due to a significant fall in prices on world markets and production volumes, and in these circumstances, the cost of steel becomes critical", - stressed the representative of "Arcelor Mittal Krivoy Rog".

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