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Ukraine will improve tariff setting in the field of alternative heat energy

Ukraine

The Government of Ukraine has made a decision to improve the tariff setting mechanism in the field of alternative heat energy.

Ukraine will improve tariff setting in the field of alternative heat energy

At a meeting of the Government of Ukraine, a draft resolution of the Cabinet of Ministers of Ukraine "On Amending the Procedure for Calculating Weighted Average Tariffs for Heat Produced Using Natural Gas for the Needs of the Population, Institutions and Organizations Financed from the State or Local budget, transportation and delivery. ”

The purpose of the adoption of the act is to improve the mechanism for calculating weighted average tariffs for heat energy produced from natural gas by taking into account all existing tariffs established by business entities, namely, one-rate and two-rate tariffs for heat energy.

Recall that in pursuance of the requirements of Article 20 of the Law of Ukraine "On Heat Supply", the State Energy Efficiency Agency calculates the weighted average tariffs for thermal energy produced using gas for the needs of the population and budgetary institutions, as well as tariffs for the transportation and supply of thermal energy.

These tariffs are used in the future to calculate tariffs for heat producers from alternative energy sources at the level of 90% of tariffs for heat from gas.

This mechanism is an effective incentive to replace gas imports and develop bioenergy. So, from September 2017 to today, the total installed capacity of heat production from alternative fuels is 555 MW.

In general, the adoption of the above changes will provide a single transparent mechanism for tariff setting in the field of alternative heat energy.

The State Energy Efficiency Agency expresses its sincere gratitude for the cooperation of the Ministry of Energy, the Ministry of Regional Development, NKREKP and other interested bodies that took part in the discussion and approval of this normative act.

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