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In "Ukrmetallurgprom" told how to reduce the tariff for electricity transmission

Ukraine / Business and Finance

Ukraine's metallurgical lobby is sounding the alarm: an increase in electricity transmission tariffs will lead to an unjustified increase in the costs of steel plants by more than UAH 0.8 billion. And this is critical for the industry, because in the first half of 2020 alone, the loss of such enterprises amounted to UAH 40 billion.

In "Ukrmetallurgprom" told how to reduce the tariff for electricity transmission

The tariff for electricity transmission, which is planned to be increased to 309.8 UAH /MW * h in 2021, can not only not be increased, but even reduced - if corruption schemes are eliminated in the energy market, according to an open letter from the Ukrmetallurgprom association of enterprises to To the Chairman of the National Commission for State Regulation in the Spheres of Energy and Utilities (NEURCU).

“At the time of the introduction of the“ green ”tariff, the state provided guarantees to energy producers from renewable sources. Therefore, it is it who must pay at the “green” tariff, ”the document says.

According to "Ukrmetallurgprom", it is necessary to eliminate the schemes operating in the electricity market. This will allow the State Enterprise "Guaranteed Buyer" to receive additional billions of hryvnia, the letter says.

The tariff increase will seriously hit business and significantly worsen the macroeconomic situation in Ukraine, the association believes. It will lead to an unjustified increase in the costs of domestic metallurgy by more than UAH 0.8 billion. And this is critical for the industry, because in the first half of 2020 alone, the loss of industrial enterprises amounted to UAH 40 billion.

Earlier, the Interpipe company, which includes a steel complex operating on electric arc furnaces, stated about the dangers of a "green" electricity tariff for the Ukrainian industry.

The "high green" electricity tariff is a constant criticism of all industrial consumers of electricity. The essence of the claims is extremely simple: private companies, which for the most part have solar power plants and wind farms, received from the state the opportunity to collect funds from consumers for goods at a price 3-4 times higher than the market price, "said the director of economics and finance at Interpipe "Denis Morozov.

In the second half of 2020, Ukrenergo increased its prices by 55% and from November 1 by another 30%. In general, it turns out that in 2020 the tariff for the transmission of electricity will double. At the same time, Ukrenergo plans to have another increase wave in 2021.

Recall that on August 1, Law No. 810-IX came into force, which was supported by President Vladimir Zelensky. The objective of the law is to implement the key provisions of the Memorandum of Understanding between the Cabinet of Ministers of Ukraine and investors in RES.

The document provides, in particular, the reduction of "green" tariffs, limitation of the volume of commissioning of new RES capacities, the introduction of full responsibility for imbalances for producers of "clean" electricity from 2022 (50% in 2021), etc. These norms will allow save the state 7 billion hryvnia annually.

In addition, the Cabinet of Ministers of Ukraine must pay off the debt of the State Enterprise "Guaranteed Buyer" for "green" generation by issuing bonds of domestic government loan (OVDP) with a maturity of five years. So the state should reimburse the State Enterprise "Guaranteed Buyer" UAH 22.4 billion.

And the government should also include in the budget the costs of financial support for a guaranteed buyer to pay for "green" energy in the amount of at least 20% of the generation, which will amount to UAH 13.9 billion.

"This amount of state aid will reduce the tariff for electricity transmission to 155.40 UAH /MW * h," Ukrmetallurgprom points out in its letter.

МЕТАЛЛУРГПРОМ
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