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Volodymyr Groysman about RAB tariffs: Government will not back the introduction of RAB method of tariff regulation, as it might affect bills of consumers
09.08.2017 | 13:16
INFORMATION AND COMMUNICATION DEPARTMENT OF THE SECRETARIAT OF THE CMU

The Cabinet of Ministers of Ukraine will not endorse an initiative developed by the National Commission for State Regulation of Energy and Public Utilities (NCSREPU) on the introduction of stimulating tariff regulation, so called RAB (Regulatory Asset Base) regulation for electricity as the said formula does not comply with the principles of transparency, hence it can increase utility costs on electricity. Prime Minister of Ukraine Volodymyr Groysman said during the Government sitting on Wednesday, August 9.

He stressed that NCSREPU is an independent authority, but the Government's position "will be loud".To this end, the Prime Minister instructed Ihor Nasalyk, Minister of Energy and Coal Industry of Ukraine, Volodymyr Kistion and Stepan Kubiv, Vice Prime Ministers of Ukraine to carry out analysis of the calculations, to discuss the obtained results with experts as well as to offer insights into the said issue.

«This (introduction of tariffs) by no means should not affect the electricity tariffs for households.The so-called RAB-tariffs introduced by the National Commission for State Regulation of Energy and Public Utilities will not be backed by the Government. I personally as Prime Minister and members of the Cabinet of Ministers are not supporting this initiative. We believe that it (a tariff) is biased, unfair and does not meet the requirements  of transparency and may lead to unnecessary costs. The scheme, which is being implemented (by NCSREPU), cannot operate. We need to make progressive rather than dubious decisions. We do not endorse it, thereby I commission to hold all necessary consultations», stressed the Prime Minister.

In a separate statement, the Head of Government emphasized the current market situation allows to talk about electricity price-cutting. «We have the possibility for objective and open pricing, I stand for reducing prices», claimed Volodymyr Groysman.

 

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