Photo: Tribuna Brovary
Ukraine’s energy regulator has approved an increase in electricity transmission tariffs for businesses starting August 1, citing the need to restore the country’s energy system and prepare it for the upcoming winter.
At a meeting on Tuesday, July 28, the National Energy and Utilities Regulatory Commission (NEURC) approved a higher transmission tariff for Ukrenergo, Ukraine’s state-owned electricity transmission system operator.
The standard electricity transmission tariff for system users will increase by 25% to UAH 928.45 per MWh, excluding VAT.
Meanwhile, the transmission tariff for companies involved in “green” electric metallurgy will rise by 50% to UAH 563.26 per MWh, excluding VAT.
The regulator said the higher, economically justified tariffs are necessary to support the restoration of Ukraine’s energy infrastructure and ensure that the power system is properly prepared for the winter season.
However, the decision is expected to increase operating costs for businesses, which could eventually contribute to higher prices for consumers.
During the discussion, Ukrenergo board member Ivan Yuryk explained that changes in the structure of the transmission network had resulted in higher electricity losses. He also pointed to currency depreciation, noting that the company’s public service obligations are linked to exchange-rate levels.
Yuryk also cited rising costs associated with restrictions on both renewable energy generation and broader system limitations, as well as a decline in electricity transmission and dispatch volumes.
Meanwhile, Ukraine’s Energy Ministry has said that household gas and electricity tariffs will not increase until the end of martial law. The ministry also rejected claims that a memorandum with the International Monetary Fund automatically requires energy prices to rise from 2027.