Business news from Ukraine

New tariff of 4.32 UAH/kWh does not cover market cost of electricity, now it is 7-8 UAH/kWh – Shmygal

8 June , 2024  

The new tariff of 4.32 UAH/kWh does not cover the market cost of electricity, which today is 7-8 UAH/kWh, said Prime Minister of Ukraine Denis Shmygal.

“Even this increase did not cover the market cost. The market cost of electricity fluctuates today around 7-8 UAH. We set the tariff at 4.32 based on the cheapest production cost of Energoatom and Ukrhydroenergo. Plus we include the cost of delivery to people from the two components. And this is the lowest cost price of the cheapest electricity, which we have in the state and which is available today”, – said Shmygal on the air of the national telethon on Friday evening.

According to the prime minister, the state pays about 90 billion hryvnias to ensure this non-market price for the population.

Shmygal also emphasized that the tariff of 4.32 UAH/kWh is fixed for one year, it is secured by subsidies.

As reported, the Cabinet of Ministers of Ukraine has established from June 1, 2024, the tariff for electricity for the population in the amount of 4.32 UAH/kWh (including VAT), which is 64% higher than the previously effective tariff of 2.64 UAH/kWh (including VAT).

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