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Rada To Reduce Electricity Costs For Farmers.

Rada To Reduce Electricity Costs For Farmers.

7 October 2008

Parliament approved an amendment to the law on electric energy, according to which, starting in 2006 the retail tariff for agricultural producers will be equal to the tariff for rural households. Currently farmers pay the same tariffs all other non-residential consumers do. This amendment will cut electricity tariffs for farmers in half. Concorde Capital: It is not clear who will subsidize agricultural electricity consumption. Most likely, the burden will be shifted to the other non-residential consumers. However, as the agricultural sector consumes only 2.4% of the electricity in Ukraine, industrial consumers will hardly notice the increase in their tariffs: the growth will not be more than 0.2%.

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