The Challenges Facing Ukraine’s Energy System
The first deputy head of the Verkhovna Rada Committee on Energy and Housing and Communal Services, Oleksiy Kucherenko, has highlighted the difficult situation facing Ukraine’s energy system. He stated that mass cyber attacks are posing a threat that could potentially impact the electricity tariff for residential consumers.
The Need for Tariff Policy Changes
Kucherenko emphasized the need for significant funds to support the energy sector in Ukraine. He mentioned that funds would be raised through tariff policy, with a portion of the funds being attracted externally. Currently, the cost of electricity for the population is lower compared to the industry, as businesses essentially cover the costs on behalf of residential consumers.
Ensuring Affordability for Consumers
Businesses pay a higher tariff of around 6-7 hryvnias per kWh, which helps to subsidize the electricity costs for residential consumers at 2.64 hryvnias. This cross-subsidization model ensures that the population can afford electricity, despite consuming below cost. Kucherenko emphasized that the functioning of businesses is essential to maintaining the current tariff level.
Options for Tariff Revision
The Ministry of Energy is currently exploring various options for revising the electricity tariff, but the final decision rests with the government. As Ukraine navigates through challenges such as cyber threats and funding shortages, finding a balance between affordability for consumers and sustainability for the energy sector remains a key priority.
