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  • NEURC has reduced Ukrenergo’s transmission tariff for 2021

    NEURC has reduced NPC Ukrenergo’s tariff for electricity transmission services by 6% for 2021, approving it at UAH 293.93/MWh (excluding VAT). This amount will be about 11% of the cost of electricity for industrial consumers (at the weighted average price in DAM of 1.3 thousand UAH/MW).

    The level of the transmission tariff proposed by the Regulator is minimal and cannot be reduced any further. After all, in order for it to cover all the major costs of Ukrenergo, it is necessary to implement the anti-crisis measures envisaged to reduce the cost of financing the public special obligations (PSO) imposed on the company, in particular – to reduce cross-subsidization of the population. Ukrenergo has got a negative financial result for the first 9 months of 2020, mainly due to a reduction of costs in the structure of the tariff for financing the PSO. Therefore, the main task that we face today in setting our tariffs is to ensure the break-even operation of the company”, said Volodymyr Kudrytskyi, Chairman of the Management Board of NPC Ukrenergo.  

    It is worth noting that the major activities expenses of the company, including the costs to cover the operation of the electricity market, in the transmission tariff for 2021 approved by NEURC have practically remained unchanged and amounted to UAH 85.05 per 1 МW·h. While the cost of performing special obligations imposed on the company amounted to UAH 208.88 per 1 MW · h. 

    In addition, NEURC has approved the dispatch tariff for 2021 at UAH 39.41/MWh, which is by 44.8% less than the company’s offer (UAH 87.83/MWh).

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