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  • To minimise transmission tariff it is necessary to change the existimg PSO mechanism

    The tariff for electricity transmission services can be revisited only together with the change of the Public Service Obligation (PSO) mechanism, reduction of the “green” tariff as per the Memorandum with RES Producers, and the implementation of other actions initiated by the Anti-Crisis Energy Headquarters. This was stated today in the NEURC meeting by Volodymyr Kudrytskyi, Acting CEO of NPC Ukrenergo.

    He stressed that the revision of the transmission tariff is not a wish of the system operator but a consequence of the deficits that have accumulated today on the electricity market and the imperfections of the existing PSO mechanism. A third of the increase will be directed to cover the “green” tariff in August–December 2020, and the remaining part – to compensate for a portion of the debt to the Guaranteed Buyer and to cover its deficit due to fulfillment of PSO of the electricity sale for the population needs.

    “To maximally reduce the size of the new transmission tariff and minimize consequences for industrial consumers, we propose to change the existing PSO mechanism for the population. To be more specific – to listen to Energoatom’s viewpoint about transferring them to direct contracts with suppliers of universal services, thus releasing the remaining volumes of NPP electricity for sale on the free market. In addition, it is necessary to adopt the law on Ukrenergo certification, which will make it possible to pay 1.4 billion UAH to the Guaranteed Buyer from the revenues obtained from the sale of cross-border flows,” emphasized Volodymyr Kudrytskyi.

    All these actions will make it possible to reduce the transmission tariff and at the same time would enable Ukrenergo’s fulfillment of PSO, performance of its operational activities and payment of necessary contributions to the state budget.


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