NPC Ukrenergo proposes to increase the tariff for electricity transmission by almost 2.7 times, to UAH 640.48/MWh starting from November 1 of this year and to set green metallurgy tariff at UAH 108.83/MWh (set as of August 1 the tariff for transmission was UAH 240.23/MWh, excluding VAT).
The draft changes to the tariff for public discussion have been published on the Ukrenergo website. Hearings on the draft amendments are scheduled for September 25.
According to the hearing procedure, their minutes will be submitted to the National Energy and Utilities Regulatory Commission of Ukraine (NEURC).
According to the explanatory note for the bill, the need to revise tariffs arose as Ukrenergo projected deficit on the Public Service Obligation (PSO) amounting to UAH 9.951 billion due to feed-in tariffs compensation, increased payments for Chornobyl nuclear power plant services by court decision (from UAH 13.381 million to UAH 18.244 million per annum), and also taking into account the general deficit of funds budgeted in 2020 tariff for the payment of public commitments to the budget in the amount of UAH 586 million. With regard to the latter, in particular, it is noted that in the first half of 2020 Ukrenergo fulfilled its obligations to the state budget for paying dividends in full in the amount of UAH 559 million at the tariff of UAH 79 million, paid income tax of UAH 664 million at the tariff of UAH 557 million.
“It is proposed to include the total amount of deficit (UAH 10.546 billion) in the tariff for electricity transmission services starting from November 1,” says explanatory note.
It is also noted that tariff calculation takes into account the expected volume of transmission (consumption), electricity exports in November-December 2020 in the amount of 25.288 million MWh.
In January-August 2020 Ukraine reduced electricity export revenues by 18.3% (by $43.883 million) compared to the same period in 2019, to $196.325 million, in particular electricity was supplied at $7.66 million in August.
According to the State Customs Service, in the first eight months of this year electricity was exported to Hungary at $92.2 million, Poland for $56.586 million, Romania for $35.811 million and other countries for $11.728 million.
In addition, in January-August Ukraine imported electricity at the value of $111.340 million (at $1.336 million in August), including from Slovakia at $53.07 million, Hungary at $36.921 million, Belarus at $10.479 million and other countries at $10.87 million.
As reported, in 2019 Ukraine increased its electricity export revenue by 14.1% (by $46.825 million) compared to 2018, to $378.767 million, including $231.359 million for electricity export to Hungary, $84.584 million for export to Poland, $41.683 million for export to Moldova and $21.141 million for export to other countries.
In addition, in 2019 Ukraine electricity imports accounted for $121.401 million, including $43.115 million import value from Belarus, $36.336 million from Slovakia, $26.485 million from Hungary and $15.465 million from other countries.
In physical terms, in 2019 Ukraine’s electricity exports increased by 4.9% (by 303.6 million kWh) compared to 2018, to 6.469 billion kWh, and electricity imports amounted to 2.698 billion kWh.
Ukraine in January-August 2020 reduced electricity exports by 26.1% (by 1.052 billion kWh) compared to the same period in 2019, to 2.981 billion kWh, according to data from Ukrenergo.
According to the calculations of the Interfax-Ukraine agency, the supply of electricity from the Burshtyn TPP energy island in the direction of Hungary, Slovakia and Romania decreased by 33.6% (by 911 million kWh), to 1.802 billion kWh.
Electricity supplies to Poland increased by 15.9% (by 137.1 million kWh), to 1.002 billion kWh.
Electricity supplies to Moldova amounted to 130.3 million kWh, which is 71.4% (325 million kWh) less than in January-August 2019.
Export to Belarus resumed in July, since the beginning of the year it amounted to 46.9 million kWh.
Ukrainian electricity was not exported to Russia.
At the same time, Ukraine imported 1.817 billion kWh of electricity in the eight months, in particular 1.062 billion kWh were supplied from Slovakia, 463.8 million kWh from Hungary, 152.3 million kWh from Belarus, 85.8 million kWh from Romania, 53.4 million kWh from the Russian Federation.
Ukraine in January-June 2020 reduced electricity exports by 12.3% (by 374.6 million kWh) compared to the same period in 2019, to 2.676 billion kWh, according to data from Ukrenergo. According to Interfax-Ukraine’s calculations, the supply of electricity from the energy island of Burshtyn TPP to Hungary, Slovakia and Romania decreased by 12.9% (by 263.2 million kWh), to 1.772 billion kWh.
Electricity supplies to Poland increased by 17.5% (by 115.2 million kWh), to 773.9 million kWh.
Electricity supplies to Moldova amounted to 130.3 million kWh, which is 63.5% (226.6 million kWh) less than in January-June 2019.
Ukrainian electricity was not exported to Belarus and Russia.
In June 2020, exports fell by 3.3 times compared with the same month last year (by 235.3 million kWh), to 102.3 million kWh.
At the same time, Ukraine for the six months imported 1.757 billion kWh of electricity, including 1.034 billion kWh supplied from Slovakia, 434.2 million kWh from Hungary, 152.3 million kWh from Belarus, 82.4 million kWh from Romania, and 53.4 million kWh from Russia.
In June, imports fell to a minimum of 18.9 million kWh, which is 1.8 times less than in May 2020, 8 times less than in April, 23.4 times less than in March, almost 30 times less than in February and January.
Electricity consumption in Ukraine, taking into account in-process losses in power grids, decreased by 5.8% (by 3.121 billion kWh) in January-April 2020, compared to the same period in 2019, to 50.810 billion kWh, the Ministry of Energy and Environment Protection has told Interfax-Ukraine.
Excluding in-process losses, electricity consumption over the first four months decreased by 5% (by 2.166 billion kWh), to 40.769 billion kWh.
The country’s industry, excluding technological losses, reduced electricity consumption by 6.6%, to 16.288 billion kWh. In particular, metallurgical industry consumed 8.938 billion kWh (9.7% less compared to January-April 2019), fuel industry some 1.099 billion kWh (7.2% less), machine building industry some 1.172 billion kWh (17.7% less), chemical and petrochemical some 1.307 billion (17.1% more), food and processing some 1.408 billion kWh (3.6% less), construction some 670.5 million kWh (2.1% less), others some 1.694 billion kWh (1.1% more).
In addition, agricultural enterprises consumed 1.120 billion kWh (2.6% less), transport some 2.145 billion kWh (9.8% less), developers some 354.6 million kWh (8.3% less).
In January-April 2020 the country’s population consumed 13.108 billion kWh (0.9% less), households some 5.101 billion kWh (8.8% less) and other non-industrial consumers some 2.653 billion kWh (3.9% less).
The share of industry in total electricity consumption over the first four months fell from 40.6% to 40%, while the share of the population grew to 32.2% from 30.8%.
In April 2020, electricity consumption, taking into account in-process losses, decreased by 7% (by 835.6 million kWh) compared to the same month of 2019, to 11.086 billion kWh, excluding in-process losses it fell by 7.8% (763.1 million kWh), to 9.28 billion kWh.