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  • OPEN DISCUSSION ABOUT UKRENERGO DRAFT TARIFF FOR 2018

    5.694 kop./kWh – this level of Ukrenergo tariff for 2018 was discussed today at an open event held at the company’s headquarters with the participation of representatives of state authorities, regional state administrations and sectoral trade unions.

    The payroll expense column together with charges + 0.52 kop./kWh, added to the company’s tariff, form the main component of the tariff change. This will increase salaries of the company’s employees by 30 percent on average.

    As previously noted, 90 percent of the total amount will be used to increase the salaries of workers and engineers in the areas of grid operation, operational dispatch management and IT, since the majority of power supply reliability and safety measures depend on their professionalism and responsibility. And the motivation of personnel plays the greatest role here.

    “The increase in salaries is stipulated by the Sectoral Agreement, as well as the Law on the State Budget of Ukraine for 2018,” said Serhii Yermak, Chief Financial Officer of SE “NPC “Ukrenergo.” “Moreover, Ukrenergo’s strategy sets the market level of salaries for the company’s employees as one of the priorities of the payroll policy. Thus, we are obliged to do this to ensure the company’s sustainable development,” he noted.

    In addition, Ukrenergo proposes increasing the cost of legal services by 20 million UAH. These funds will be directed, in particular, to legal support in the field of international law in order to secure the claim regarding compensation for the value of lost property and compensation for the losses incurred by Ukrenergo because of Russia’s occupation of the Autonomous Republic of Crimea.

    The draft tariff structure implies, inter alia, expenses for the State Inspectorate for Energy Supervision in the second half of 2018. To this end, the tariff structure included expenses worth 137.9 million UAH. “By the way, this amount is lower by more than 52 million UAH compared to the previous proposal, which was published for discussion. We reviewed this amount and, due to cost optimization, managed to ensure significant savings for the subdivision’s maintenance,” Serhii Yermak emphasized.

    The share of Ukrenergo’s tariff will constitute only 2.7 percent of the cost of electricity paid directly by consumers. Therefore, its growth by 0.8 kop./kWh will not be reflected in consumer payment documents.

    In the course of discussions, Rostyslav Zamlynskyi, the First Deputy Chair of Lviv Regional State Administration, expressed the special support for the draft tariff, in particular, in the part of expenses for raising salaries. He stressed the acute problem of the outflow of skilled professionals abroad due to low salaries. And this situation is particularly apparent in the West of Ukraine, adjacent to Europe.

    Based on the results of the discussion, the participants prepared and signed the minutes expressing support for the company’s initiatives. All materials will be sent to NEURC for adopting a decision.

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