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Electricity tariff for Ukrainians extended at UAH 1.68 per kWh for one more month

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Electricity tariff for Ukrainians extended at UAH 1.68 per kWh for one more month

At the initiative of the Ministry of Energy of Ukraine, the government has extended the mechanism for imposing special duties (PSO) for residential consumers in the electricity market for one more month. The corresponding resolution was adopted today at a meeting of the Cabinet of Ministers. Consequently, the electricity tariff for Ukrainians remains at the level of 1.68 hryvnia per kWh until May 1.

“In the near future, the Ministry and other state institutions that are directly or indirectly related to the process of electricity consumption by the population will continue to work on a digitalized system that will help the state protect vulnerable consumers, in particular on the electricity market, which in turn should allow analyzing various options for further pricing ", - noted in the Ministry of Energy.

Let's remind that now there is a single fixed tariff for the population - 1.68 hryvnia per kWh. It was introduced by the government on January 1, 2021 due to the fact that the Regulator (NKREKP) increased tariffs for the distribution and transmission of electricity.

The Ministry of Energy said that more than 90% of this final tariff for the population is tariffs for transmission, distribution and supply. Accordingly, only 15 kopecks from 1.68 hryvnia is used to pay for the electricity produced by NNEGC Energoatom and received by household consumers. This is well below the price paid by commercial consumers.

Since the general tariff for the needs of the population for 90% consists of tariffs for transmission, distribution and supply of electricity, which were increased by the decisions of the regulator in 2020, the benefits that were provided to household consumers actually led to the fact that for Energoatom there remained a negative amount for the electricity produced for the needs of the population.

Accordingly, in December last year, the Government was forced to abolish the preferential tariff for electricity at 90 kopecks per kWh for the population for the first 100 kWh, cancel a number of other benefits and monetize the benefit for electric heating, effectively establishing a single fixed tariff for household consumers.

Help

PSO - special responsibilities of participants in the electricity market to ensure public interests in the process of functioning of the electricity market. Accordingly, state-owned companies, in particular NNEGC Energoatom, must sell part of the generated electricity (about 50%) for the needs of the population at a fixed below market price (today - 15 kopecks per kWh, excluding VAT).

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