Power and energy security

‘Impressive Energy Reforms’. How Both the Government and R. Akhmetov Swindled Miners

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Dmytro Boyarchuk, CASE Ukraine Executive Director, commented to the ‘Glavcom’ media outlet on validity of raising electricity tariffs for the entrepreneurs.

‘You cannot find in any agreements with foreign creditors a request to raise electricity prices. Why was it increased? – CASE Ukraine`s director Dmytro Boyarchuk asks. – The logic was to equalize the electricity tariffs for households and industrial consumers. In this way, they planned to be done with cross-subsidization, because it was domestic consumers covering the difference in rates.

But so what happened? It turns out that subsidizing not only has not disappeared, but it increased rapidly: this year the amount has already exceeded UAH 54 billion (in 2013 – UAH 35 billion). ‘Each consumer will have to pay an additional UAH 1 200 bill. Investments in energy development do not grow. Then why this reform was to start if the money goes to nowhere? It is unclear what happens to the modernization and development of energy networks. There are more questions here than answers’, – says Boyarchuk.

November 10, 2016