REUTERS
Ukraine's energy market watchdog earlier adopted a resolution that led to the price hike.
Deputy head of the Verkhovna Rada Committee on Economic Development Dmytro Kisilevskiy says power rates for the industry soared by 46% on the weekend (May 2-3), to UAH 1,297 (US$48) per MWh, due to the suspension of certain nuclear power plants' (NPP) units and an increase in the ceiling price of electricity generated from renewables.
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"The industry has received another 'gift' from the government and [Ukraine's National Energy and Utilities Regulation Commission] NEURC, as the price of electricity this weekend skyrocketed by 46% against the previous one. This was caused by two main factors, namely the shutdown of nuclear power units and a three-fold increase in the maximum price of green electricity on the energy market," he wrote on Facebook on May 3.
The NEURC earlier adopted a resolution that contributed to the price hike.
"On Friday, the tariff regulator, NEURC, quietly passed a resolution that led to a sharp rise in the electricity price on the weekend. So, the price this weekend jumped by 46% compared to that effective last weekend. If a week ago, the average price on the day-ahead market on Saturday-Sunday was UAH 886 [US$33] per MWh, it was set at UAH 1,297 per MWh this weekend," he added.
Kisilevskiy believes that with such a tariff policy, electricity consumption will be further declining over the lack of consumers.
"Those areas where the coronavirus has failed to affect producers will be finished by the government and the regulator. Industrial enterprises will be reducing their production and cutting jobs," he summed up.