Dmytro Boyarchuk, CASE Ukraine Executive Director, commented to the UBR media outlet on the government’s plans to increase electricity tariffs in 2017.
‘It was expected that the equalization of tariffs for both households and industry will not only correct unbalance in paying, but also give funds to the energy sector for the equipment modernization and development of the grid. Since cross-subsidization is an evil’, – Dmytro Boyarchuk, the executive director of the Center for Social and Economic Research ‘CASE –Ukraine’ reported.
According to him, when the National Commission for State Regulation of Energy and Public Utilities (NCSREPU) in 2015 took the decision to gradually raise electricity tariffs for households, industry ‘sponsored’ people at USD 35 billion. Now the figure reached USD 54 billion.
‘As a result, it is preliminary estimated that each year each goods and services consumer pays additional UAH 1 200 per year (or UAH 100 per month), the amount which is incorporated into the price of commodity producers’, – Boyarchuk calculated.
However, he claimed, no one sees a significant increase of investment into the energy networks. Thus, raising tariffs has led to nothing.