Courts lack authority to determine tariffs for electricity distribution - NEURC
The National Energy and Utilities Regulation Commission (NEURC) stated that the courts could not determine the components of electricity distribution tariffs.
This statement was published on July 22, 2021, by NEURC’s press center.
"The regulator states that it is inadmissible for courts to set tariffs for electricity distribution for certain regional power companies," the statement said.
This statement was published against the background of the decision of the Seventh District Administrative Court of Appeal of Vinnytsia, according to which the decision of the first instance was revoked, which overturned the decision of the NEURC to determine the projected technical losses of the Vinnytsiaoblenergo, a regional electricity network operating company, for 2020 in the distribution tariff.
"In fact, the court ordered the NEURC to increase the amount of these costs in the tariff structure by about UAH 50 million, which ultimately must be additionally paid by consumers of Vinnytsia region," the NEURC's press center wrote.
As previously reported by ExPro, in mid-July 2021, the Security Service of Ukraine (SSU) reported the discovery of the largest crypto farm in one of the premises of the Vinnytsiaoblenergo. According to the SSU, this farm illegally used the electricity of the distribution company. The special services estimated the level of losses at UAH 5 million – UAH 7 million per month. After that, the NEURC reported possible abuses by the Vinnytsiaoblenerho to artificially increase the technological costs of electricity in order to overstate the distribution tariff.