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How much should a citizen of Ukraine pay for electricity?

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If the electricity market becomes a reality, then, according to the calculations of experts, the price of a kilowatt hour may triple for citizens.

How much should a citizen of Ukraine pay for electricity?

Subsidizing the population by business has led to the fact that the cost of electricity, excluding delivery costs, for household consumers is only 11 kopecks per kilowatt-hour. At the same time, the cheapest nuclear generation costs 56 kopecks per kilowatt-hour. This was stated by the deputy head of the energy efficiency department of NJSC "Naftogaz of Ukraine " Alexey Khabatyuk.

What constitutes the price of electricity for the end consumer?

  1. Electricity as a commodity
  2. Supplier markup
  3. Distribution Rate
  4. Transfer Rate
  5. Dispatch rate

Taxes: 20% value added tax (VAT) and 3.2% excise.

It's simple. What about the numbers? Let's consider the calculation of a kilowatt hour of electricity using the example of a household consumer in Kiev.

First, let's skip the cost of electricity as a commodity. How much does ancillary services cost to a consumer: supply, distribution, transmission and dispatch?

Supplier's markup . For the universal service provider (PUP) LLC "Kiev Energy Services", the fee is 4.896 kopecks /kWh (kilowatt-hours) without VAT.

Distribution Rate . For PJSC "DTEK Kievskie Elektroseti " (voltage class 2), the tariff is 22.929 kopecks /kW * h without VAT.

Transmission rate by NEC "Ukrenergo " backbone networks is 34.743 kopecks /kW * h without VAT.

Tariff for dispatch control of the system, which is carried out by NEC "Ukrenergo ", is 0.89 kopecks /kW * h, excluding VAT.

The amount from 2nd to 5th position is: 4.896 + 22.929 + 34.743 + 0.89 = 63.458 kopecks /kW * h.

And how much then remains for the actual electricity as a commodity?

The current electricity tariff for the population with a monthly consumption of up to 100 kW * h = 90 kopecks /kW * h with VAT, or 75 kopecks /kW * h without VAT.

75 - 63.458 = 11.54 kopecks /kW * h, excluding VAT, remain for electricity as a commodity (including excise tax of 3.2%). And without excise tax and even less = 11.18 kopecks /kWh without VAT.

According to the State Enterprise "Market Operator ", the market price of electricity in the domestic market, for example, on July 5, amounted to 165.93 kopecks /kW * h, excluding VAT.

This is the weighted average price per day in the United Energy System of Ukraine (UES). This, of course, is not accurate for the population, since the consumption profile of the population is different. And the price by population profile will be even higher.

It turns out that if a resident of Kiev consumed 100 kWh of electricity per month, then he underpaid for electricity at least 100 * (165.93 - 11.54) /100 = 154.39 UAH + 20% VAT = 185, UAH 27

The amount is naturally not final, but minimal, since the markup of the universal service provider is regulated and, according to Khabatyuk, it will be even higher without government regulation.

Let us remind you that on July 1, the next part of the law on the free electricity market came into force in Ukraine. A transparent, competitive electricity market will start operating in the country, officials said. This means that electricity will turn into a commodity that can be bought, sold and resold without any restrictions.

The reform of the electricity market provides for the introduction of a European model that will stimulate competition in Ukraine and the emergence of new market participants.

According to the President of the Energy Association of Ukraine Oleksandr Trokhimts, the launch of the electricity market will not lead to an increase in tariffs for the population and until the end of 2020 they will not change. Prime Minister of Ukraine Volodymyr Groisman said at a government meeting on July 5 that the new electricity market is functioning successfully and the price of electricity has not yet increased.

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