Business news from Ukraine

Business news from Ukraine

Ukrainian Renewable Energy Association supports review of electricity transmission tariffs for NPC “Ukrenergo”

9 June , 2026  

The Ukrainian Renewable Energy Association (UREA) supports the revision of electricity transmission tariffs for NPC “Ukrenergo” and proposes simultaneously launching the practical implementation of a mechanism to protect vulnerable electricity consumers and accelerating the introduction of targeted monetary support for the population.

This is stated in the association’s official letter addressed to the National Commission for State Regulation of Energy and Public Utilities (NEURC) and the Ministry of Energy of Ukraine, published on Facebook.

“The UAVE emphasizes: the discussion should not be limited solely to the tariff rate. A comprehensive solution is needed—a financially sound tariff must be combined with a gradual reduction of cross-subsidization and the launch of targeted monetary support for vulnerable consumers,” the association stressed.

The UAVE also considers it necessary to work with the Ministry of Social Policy, Ukrenergo, distribution system operators (DSOs), and other stakeholders to develop a data-sharing mechanism for launching targeted monetization of subsidies.

The association asserts that this approach will help maintain the financial stability of the energy sector, preserve social protection for the population, and reduce distortions in the electricity market. The transition to targeted support also aligns with Ukraine’s commitments regarding market liberalization to the EU, the IMF, and other international partners.

In turn, as stated in the association’s appeal to the NEURC and the Ministry of Energy, the UEA supports Ukrenergo’s position on the electricity transmission tariff, as the financial stability of the transmission system operator (TSO) is critical for the reliable operation of the power system, the fulfillment of special obligations, stable settlements between market participants, and the restoration of energy infrastructure.

The association cited Ukrenergo data, according to which the projected volume of electricity transmission in 2026 will be approximately 89.6 million MWh, which is significantly lower than the figure used when setting the current tariff. At the same time, costs to cover transmission losses have increased, the configuration of power grids is changing, and the volumes of electricity imports and long-distance transmission are growing—a situation that, against the backdrop of ongoing damage to energy infrastructure, requires significant financial investment.

“Trends such as the accumulation of debt among market participants, deteriorating payment discipline, reduced opportunities for the restoration and development of grid infrastructure, and a decline in the investment attractiveness of the energy sector—all in the absence of a source to cover the TSO’s costs—will intensify,” the UAVE emphasized.

At the same time, as the association noted, amid systematic attacks on energy infrastructure, the development of distributed generation, renewable energy sources (RES), and energy storage systems has become one of the key elements of energy security, as these facilities provide additional stability to the power system, increase its flexibility and maneuverability, and reduce the risk of shortages.

“Therefore, ensuring timely and predictable payments to renewable energy producers is not only a matter of fulfilling financial obligations but also a crucial factor in the further development of Ukraine’s energy resilience,” the UAVE concluded.

As reported, the NEURC proposes setting the tariff for NPC “Ukrenergo” for electricity transmission at 903.53 UAH/MWh (excluding VAT) effective July 1, 2026, which is 21.62% higher than the current rate.

It is noted that the updated tariff component for Ukrenergo’s special obligations regarding payment for electricity from alternative sources amounts to 367.56 UAH/MWh within the transmission tariff structure.

Accordingly, it is proposed to increase the dispatch tariff by 7.83% to 118.64 UAH/MWh.

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