Government creates conditions for stabilizing electricity transmission tariffs for industry

The Government has updated the mechanism for purchasing electricity for the needs of NPC Ukrenergo. From now on, the transmission system operator will be eligible to purchase electricity from NNEGC Energoatom through special auctions under bilateral agreements. This will make this component of the electricity transmission tariff more predictable, thus providing grounds for a smaller increase in the transmission tariff.

The relevant amendments to the Procedure for conducting electronic auctions for the sale of electricity under bilateral agreements were approved by the Cabinet of Ministers of Ukraine.

"The high cost of electricity for industry is an obstacle to economic recovery as it reduces the competitiveness of Ukrainian industry in foreign markets. We should seek ways to resolve this critical issue. Today, we are taking another step in this direction, in particular by optimizing one of the components of the electricity transmission tariff, and we continue to look for other opportunities," said Vitalii Kindrativ, Deputy Minister of Economy, Environment, and Agriculture of Ukraine.

Under the new rules, NNEGC Energoatom shall sell electricity for the needs of NPC Ukrenergo, in particular to cover technological losses, at a forecast price based on weighted average market indicators rather than short-term price fluctuations. This is expected to reduce the cost of electricity transmission tariffs, which directly affects the final price for all non-residential consumers.

In fact, the decision creates a more stable and understandable pricing model for non-residential consumers in terms of the electricity transmission tariff. Companies will get the opportunity to plan their costs without sudden tariff fluctuations.

Electricity sales for the needs of NPC Ukrenergo shall be carried out through special short-term electronic sessions with the possibility of applying a 30% discount on the weighted average market price. The mechanism shall operate exclusively during the period of martial law and shall not require additional expenditures from the state budget.