Ukraine’s NKREKU Proposes Higher Business Electricity Rates Starting July 1
Ukraine’s National Energy and Utilities Regulatory Commission (NKREKU) has signaled an plan to raise electricity prices for commercial customers effective July 1. This development was reported by RBC-Ukraine, which cited a confidential source within the agency.
According to the source, NKREKU plans to repeal the current price ceilings that cap what businesses pay for electricity. The move would take effect on July 1, replacing the existing constraints that were in place to limit bills for non-household consumers.
The same source suggested that the current ceilings, which limit prices until June 30, will be removed, and new tariff parameters will be introduced in July. Those new figures are expected to be higher than the existing caps, reflecting adjustments in supply costs and systemic pressures facing the energy sector.
At present, the publication notes, the price to supply electricity to a business during periods of minimum demand is capped at 2,000 hryvnias per MWh (approximately $54), while during peak demand hours the cap stands at 4,000 hryvnias per MWh (around $108).
Earlier, a Ukrainian editor and NKREKU representatives discussed with the government a proposal to double electricity tariffs for the entire population, arguing that the cost should not be shared solely according to consumption levels. The Ministry of Energy indicated that without price increases, restoring critical infrastructure and preparing for the winter season could be severely hindered, underscoring the necessity of tariff reform to maintain power reliability and network resilience amidst ongoing energy challenges. This debate highlights the balancing act between safeguarding consumers and ensuring the energy system’s financial viability during a period of elevated costs and reconstruction needs.