How in Ukraine Getting Electricity Rules Will Change


CASE Ukraine`s CEO Dmytro Boyarchuk commented to the ‘Delo. ua’ media outlet on how getting electricity tariff`s changes will help Ukraine to rise in the Doing Business raking.

… According to CASE Ukraine`s CEO Dmytro Boyarchuk, the new rate is more than ‘interesting’ for regional power companies. It is difficult for Boyarchuk to assess, how new rates impact on Ukraine’s position in the Doing Business ranking. The number of procedures is reduced, but the cost of getting electricity rises sharply. Also, there is no clear understanding of how the new method will affect the timing. Therefore, we can only say about partial or conditional getting electricity simplification.

… CASE Ukraine Analysts also worked on the methodology for calculating the cost of non-standard connections. They offered to take into account the historical value of similar works, adjustment for inflation, networks workload and voltage level.

According to Boyarchuk, the cost of the 1 kW installed capacity has massively differed from what National Commission for State Regulation of Energy and Public Utilities (NCSREPU) offers. It would not be so attractive to regional power companies.

Boyarchuk believes NCSREPU maneuvered between the two problems: to avoid accusations of manipulations and provide with a sufficient getting electricity bid in order not to ‘offend anyone from the regional power companies’. Actually, that is why they stayed at a rate based on the value of assets.

‘Then, ask all the questions of those, who had estimated the value of assets. The method itself is very transparent and clear’, Boyarchuk said.

February 1, 2017