Electricity Tariffs May Rise by 20% This Summer - Expert

Stanislav Ignatiev, the head of the Ukrainian Renewable Energy Association, recently commented to the Ukrinform agency about the alarming possibility of a significant rise in electricity tariffs in Ukraine. According to Ignatiev, tariffs could increase by as much as 20% as early as this summer, a situation he attributes to political decisions and the obligations that Ukraine has towards its international creditors.

Ignatiev emphasized that the issue of tariffs is inherently political and depends largely on the will of the state. He noted that international partners are insisting on the need for a gradual adjustment of tariffs to align with market levels. "There is a condition — to increase the tariff for the population by approximately 25% each year over the coming years," the expert remarked, highlighting that this demand comes from international creditors.

The expert also reminded that the current electricity tariff is below market rates and is, in fact, subsidized by state-owned companies. "The difference between the wholesale price and the tariff for the population is covered by Energoatom and hydropower generation," Ignatiev explained, pointing to the financial mechanisms that sustain the existing level of tariffs.

He predicts that the first changes in tariff policy could occur as early as this summer. "There is a threat that the tariff could increase by 20% plus or minus this summer," he stated, stressing that such a rise could have serious repercussions for both the population and the economy as a whole.

At the same time, Ignatiev stressed that a strategic solution to the tariff issue is linked to the development of renewable energy, which he believes is currently the most economically advantageous alternative. "The construction of solar and wind power plants is significantly cheaper than restoring coal or developing gas generation. The payback period for new solar power plants can be as short as two years," he emphasized, pointing out the benefits of investing in renewable energy sources.

The expert also added that to attract investments in new generation, the government must ensure transparent rules and an open market. In his opinion, this is a necessary condition for the development of Ukraine's energy sector and for reducing dependence on imported energy resources.

It is worth noting that earlier, Ukrinform reported that the Cabinet of Ministers of Ukraine is submitting three draft laws to the Verkhovna Rada regarding tax changes that could impact the country's energy sector. These changes may represent important steps in reforming the energy market and enhancing its efficiency.

Photo: Facebook / Stanislav Ignatiev

Join our Telegram, Instagram, and YouTube channels to stay updated on the latest news and events in Ukraine.