Electricity Tariffs For Industries Could Rise

Ukraine’s Fuel and Energy Minister said a 4-5% electricity tariffs hike for industrial enterprises is possible, due to an increase in prices for railway transport starting in April. Transport tariff growth will lead to higher costs for energy coal transportation. This will lead to a slight increase in electricity tariffs. Residential tariffs for electricity will not rise this year, according to the ministry. Concorde Capital: The national electricity commission sets fixed tariffs for residential consumers, so any price increases must naturally be passed on to industrial consumers. Industrial consumers can avoid cross-subsidization by purchasing electricity directly from the wholesale market, or from independent suppliers who do not have residential consumers. Thus, if electricity tariffs increase in April, industrial consumers will have more incentive to stop buying from Oblenergos. (Please refer to our February Obloenergo Report.)