Increase in energy prices for Ukrainians could be postponed to July

26 May, 04:25 PM
Increase in electricity tariffs for the population (Photo:Tiko0305 / depositphotos)

Increase in electricity tariffs for the population (Photo:Tiko0305 / depositphotos)

The expected increase in electricity tariffs for households in June may not go ahead, Oleg Seminsky, Deputy Chairman of the Verkhovna Rada Committee on Energy, Housing and Utilities, wrote on Facebook on May 25. 

However, the price increase is still inevitable as this is the only way Ukraine will be able to preserve its own energy system.

Tariff increase may be postponed until July.

"Yes, indeed, it is expected that starting from June 2023, the tariff will be set at UAH 2.80 ($0.08) per kW for all consumers," said the lawmaker, which would mark a two to three cent USD per k@/h increase.

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“However, I have a feeling that the tariff increase will be postponed for another month, which means that the Government is sympathetic and is trying to ensure the smoothest possible transition to the new terms of use of the service.”

Some Ukrainians will continue to receive energy subsidies, while the number of recipients will be increased.

"I hope that the transition to the new tariff and the adjustment of the population to the new conditions will be as smooth and painless as possible for all categories of consumers," he added.

How much will energy costs increase?

Electricity tariffs for households may increase after the National Energy and Utilities Regulatory Commission (NEURC) raised electricity distribution tariffs for most regional power distribution companies.

The price increases being contemplated are moderate and Ukrainians will not be subjected to multiple increases.

There are proposals to increase tariffs to UAH 2.40 ($0.06) and UAH 2.80 ($0.08) per 1 kWh, up from the current UAH 1.44/kWh ($0.04) for consumption up to 250 kWh per month and UAH 1.68/kWh ($0.05) for consumption above this limit. Another offer is an increase to UAH 2.00 ($0.05) and UAH 2.40 ($0.06) per kWh, respectively.

Ukrainians with low incomes will not feel significant pressure on their family budgets from the increase in electricity tariffs. The government will support low earners through subsidies and energy efficiency measures.

According to a government decree, the old electricity tariffs for household consumers are valid until May 31. There is a high probability that the electricity bills will rise in June or July 2023.

On average, electricity bills may increase by UAH 200-300 ($5.42-8.12) in the summer.

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