The Ukrainian Employers' Federation has opposed the increase in electricity transmission tariffs.

The Federation of Employers of Ukraine (FEU) opposes the proposed increase in tariffs for the transmission and dispatching of electricity by the National Commission for State Regulation in the Spheres of Energy and Utilities (NERC).

This is stated in the official statement of the FEU.

“NERC has approved a tariff project for electricity transmission services at the level of 665.27 UAH/MWh, which represents a 26% increase. The Federation of Employers of Ukraine considers such increases to be dangerous for the country's economy, as raising these tariffs adds extra burden on Ukrainian enterprises, which could lead to catastrophic consequences amid the war. For instance, if only one tariff—on electricity transmission services—is raised, energy costs will increase by more than 13 billion UAH, which will reduce the competitiveness of products,” the statement reads.

The situation is further complicated by the fact that many Ukrainian enterprises are experiencing significant losses due to infrastructure destruction and production capacity damage, according to the authors.

Increasing tariffs will lead to a decline in production, which will negatively impact currency and tax revenues amid budget deficits, emphasized the FEU. Some costs included in the NERC tariff projects are excessive and need to be adjusted, the federation believes.

“The tariff project for dispatching includes costs for ancillary services amounting to 11.4 billion UAH, but an analysis of data for 2024 shows that actual costs are significantly lower. Therefore, these costs can be substantially reduced. We propose to optimize the tariff structure for 2025: set the tariff for electricity transmission services at a level not exceeding 530 UAH/MWh, and the dispatching tariff at a level not exceeding 60 UAH/MWh,” noted the FEU.

Background. Earlier, Mind reported that NERC published a draft decision to increase the electricity transmission tariff for non-household consumers by 25.8% to 665.26 UAH/MWh. Among the reasons provided by the commission for this decision are the need to increase salaries at "Ukrenergo" and to make payments on loans.