June

The tariff increase will not affect electricity prices for household and small non-household consumers, but will be felt for industry and other consumer groups. The main purpose of this step is to ensure stable revenues for timely payments to producers of electricity from renewable sources.

National Energy and Utilities Regulatory Commission (NEURC) adopted the decision simplifying the procedure for changing the gas supplier for household consumers

Since electricity prices are the same for the entire population throughout Ukraine, the current PSO model protects not only economically vulnerable but also wealthy consumers, which seems economically unjustified. Moreover, prices for households have not changed since March 1, 2017.

However, current tariff, even its upper rate, does not reflect real costs incurred for the production, procurement and supply of electricity to households, since the country uses hidden cross-subsidization of the population through the mechanism of Public Service Obligations (PSO).