Electricity transmission may become more expensive in Ukraine: how it will affect tariffs.

The electricity transmission tariff will increase

The National Commission for State Regulation in the Fields of Energy and Utilities (NKREKP) has published a draft resolution proposing an increase in the electricity transmission tariff by 30%, to UAH 686.23/MWh, for users of the system, excluding 'green' electric metallurgy enterprises.

The regulator planned to set the tariff for 2025 at UAH 678.58/MWh, but the consideration of the issue was postponed for refinement. The updated draft resolution now provides for a tariff of UAH 686.23/MWh for most users of the system and UAH 359.55/MWh for 'green' metallurgists.

The proposed tariff mainly consists of costs for the fulfillment of special obligations, including the service of ensuring an increase in the share of electricity from alternative sources, except for private households. The forecast average 'green' tariff for the next year will be UAH 6437/MWh.

'Ukrenergo' plans to spend UAH 14.9 billion next year on purchasing electricity to compensate for technological costs. Most of the electricity will be purchased under bilateral contracts, and the remainder will be on the RDN and balancing market. In 2024, expenditures for this item amounted to UAH 12.8 billion.

Businesses have opposed the tariff increase. The Ukrainian Association of Ferroalloy Producers and other electrotechnology products stated that this will lead to increased costs. The Association of Building Materials Producers also warned about price increases. The costs to businesses from the tariff increase were estimated at UAH 13 billion.