Getting electricity is the key obstacle to attracting investors. Dmytro Boyarchuk, CASE Ukraine`s Executive Director, described in an ‘Ekonomichna Pravda’ expert column the developed pattern, which allows to solve this problem online.Getting electricity is the key obstacle to attracting investors, and that is not news. And the main problem of getting electricity is the lack of process transparency.
Ukrainian businessmen somehow deal with that, but the foreigners just transfer their production in other countries. There are dozens of well-known cases of refusal to build production capacities because of the power lines accession problems. Businesspeople do not need much. Being at the stage of a business plan, they want to know here and now, how much they will pay for accessing power grids and when accession will be performed.
The scheduling and large-scale investments are impossible without that. Unfortunately, the current electricity accession model does not answer these two simple questions.
That is why independent experts with the support of the public sector developed and proposed a different model named a ‘double-rate power grid accession policy’: the rate of 1kW, which access to power line, and the rate of a 1 km transmission line.
Its core is simple. There are average data on the construction cost of electrical lines referring to different voltage classes and in different conditions of load network. These data clearly answer the question, how much will it cost to join in a particular point for a given level of power ordered. There are no opportunities for negotiations.
Power line accession service may look like a cost calculator for getting electricity
This accession procedure may drag our country from 137th place in the Doing Business ranking to roughly 60th position. Both the NCSREPU and the government are given with an off-the-shelf solution. It offers an inexpensive and convenient service for consumers and gives the green light to investors. The public sector should vigilantly follow the power accession to be without any ‘tips’ and the service itself to be available online.
Read the full article [in ukrainian].