In July, the National Energy and Utilities Regulatory Commission (NEURC) presented a draft resolution “On Approval of Amendments to the Procedure for Setting (Forming) Tariffs for Electricity Distribution Services” during its meeting.<\/p>\n
This draft proposed changes to the procedure for setting electricity distribution tariffs and the elimination of the division of consumers into voltage level classes. However, as a result of the review, the draft resolution was not supported by the NEURC.<\/p>\n
Experts from the European Business Association’s Energy Committee point out that changes in tariff formation approaches and the elimination of consumer classification by voltage level could have serious financial consequences for a number of Ukrainian enterprises.<\/p>\n
Considering the ongoing negotiations regarding Ukraine’s accession to the European Union, businesses believe it is necessary to improve the system of classifying consumers by voltage levels, rather than eliminating it.<\/p>\n
However, according to information from the EBA’s member companies, the NEURC is once again considering revising the existing approach to setting distribution tariffs with the aim of abandoning differentiation by voltage classes.<\/p>\n
A decision to average electricity distribution tariffs without differentiation by voltage classes would be a critical mistake for the Ukrainian economy as a whole and contradicts European practices, which involve dividing consumers into more classes than currently exist in Ukraine.<\/p>\n
The consequences of the NEURC adopting this decision would include increased electricity costs for a number of enterprises, leading to higher product prices, making the continued production of certain goods economically unviable, and potentially resulting in the complete shutdown of some manufacturing operations.<\/p>\n
Therefore, the European Business Association community appeals to the NEURC not to support the elimination of the above-mentioned voltage classes, while expressing readiness for further joint work on improving the classification system.<\/p>\n","protected":false},"excerpt":{"rendered":"
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