Household electricity tariffs in Ukraine could increase by about 20% as early as this summer. Stanislav Ignatiev, Chairman of the Board of the Ukrainian Association of Renewable Energy, made the statement.
According to him, tariff decisions largely depend on political decisions and commitments to international partners.
“This is a political issue, a matter of political will. At the same time, there are requirements from our international creditors,” Ignatiev noted.
He clarified that partners insisted on gradually bringing tariffs to market levels.
“The condition is to raise household tariffs by about 25% annually over the next few years,” the expert said.
Ignatiev noted that current tariffs remained below market levels and were effectively subsidized by state-owned companies.
“The difference between the wholesale price and the household tariff is covered by Energoatom and hydropower generation,” he explained.
According to his forecast, the first changes could come as early as summer.
“There is a risk that tariffs may increase by around 20% from summer,” Ignatiev said.
He emphasized that the strategic solution lay in expanding renewable energy, which was now the most cost-effective option.
“Building solar and wind power plants is much cheaper than restoring coal or developing gas generation. New solar plants can pay back in as little as two years,” he stressed.
Ignatiev added that attracting investment into new generation required transparent rules and an open market. (Ukrinform)