NEURC allowed 7.5%, raise in transmission tariff of Ukrenergo, up to 316.08 UAH/MWh

The National Energy and Utilities Regulation Commission (NEURC) approved an increase in the tariff for electricity transmission by the NEC Ukrenergo, while approving its 7.5% raise effective April 1, 2021, up to 316.08 UAH/MWh.

The related decision was made by the NEURC at its weekly meeting on February 17, 2021.

In the substantiation for such a decision, the NEURC reported that the NEC Ukrenergo on February 17, 2021, provided the listed data on financial expenses for repayment of credits to the Ukrainian state banks. The item "financial expenses" should be increased by UAH 1.579 billion, so the total financial expenses of the company will amount to UAH 3.453 billion.

According to the justification, the NEC Ukrenergo will incur additional expenses for servicing interest on loans from Ukrainian state banks (11.5%-12% per annum interest in hryvnia), as well as 3.9% due to the Ministry of Finance for issuance of state guarantees in the amount of UAH 24 billion.

According to the decision of the NEURC, in the structure of the transmission tariff of the NEC Ukrenergo, the share for offsetting the debt of the SE Guaranteed Buyer for electricity offtaken from Ukrainian RES generators is envisaged at 60.5%.

However, while raising the transmission tariff, they did not take into account the proposals of the NEC Ukrenergo to recalculate the item "Costs associated with public service obligations (PSOs), except for private households", as expenditures under the state- budgeted Program of Financial Support for SE Guaranteed Buyer to Pay for Electricity Generated from Renewable Energy Sources, in accordance with the provisions of the Law, can be included into the State Budget of Ukraine until the end of 2021.