Power and energy security

Ukraine Has Simplified the Procedure of Getting Electricity


Dmytro Boyarchuk, CASE Ukraine`s CEO and USAID`s ‘Leadership in Economic Governance’ coordinator, commented to Delo.ua media outlet on the National Commission for State Regulation of Energy and Public Utilities`s (NKREPU) decision to simplify methods of calculating the costs of joining the network of power plants with capacity from 160 kW to 5000 kW.

According to the analytical center CASE Ukraine`s data, in Ukraine the cost of non-standard connections (above 50 kW) was determined on the basis of ‘contractual arrangements’ with the local monopoly – that is, with a regional power distribution company. They could manipulate the price of joining: some clients could experience overstating, others understating the cost.

‘It is actually about getting electricity for the standard cases up to 5000 kW. The only thing is that when getting electricity from 160 kW to 5000 kW, a linear component (the distance from the object to an existing network – Ed.) will be added’, – Dmytro Boyarchuk, USAID`s ‘Leadership in Economic Governance’ coordinator and CASE Ukraine`s CEO, says.

Fee for power capacity must take into account the value of regional power distribution company`s assets. Boyarchuk notes in this regard, that the introduction of a universal rate of 1 kW can reduce interest in new users` joining for those regional power distribution company, for which averaged rate will not cover their costs. And in this case, power engineers will not hurry to fulfill their obligations to the business

November 23, 2016