NERC Preparing To Boost Residential Tariffs

The National Electricity Regulation Commission (NERC) drafted a decree according to which household electricity tariffs will be connected to their amount of monthly consumption starting from April 1: if electricity consumption is lower than a defined level, the tariff will be 31-40 USD/MWh (depending on the group of consumers). This is equal to current tariffs for households. Any kWhs above the threshold level will cost 20% more. Alexander Paraschiy: The new tariff is scheduled to be introduced to protect low-income households who consume little electricity. To be eligible for these tariffs, households have to sign a contract with their energy supplier. This draft is a clear signal that starting in April 2007, tariffs for households will grow by at least 20%, but those eligible for “social protection” will not see increases.