Oleksandr Kharchenko: tariff increase won’t fund restoration of generation capacities

Starting from June 1, 2024, the single tariff for electricity for the population will amount to UAH 4.32/kWh. The corresponding decision was made during the meeting of the Cabinet of Ministers of Ukraine on May 31. However, Oleksandr Kharchenko, Director at the Energy Industry Research Center, argues that this increase is inappropriate and that due to improper distribution, the funds received will not be allocated to the restoration of generation capacities.

The expert made this statement during a briefing at Media Center Ukraine – Ukrinform.

“As for the tariff, I consider this decision to be deeply flawed. It is ill-conceived, it’s out of context, and it does not contribute funds to the restoration of generation capacities. Unfortunately, most of the money from the tariff increase for the population goes to Energoatom. The entire sum from the increase, which will amount to a little over 50 billion per year, is divided into two parts, as this is how the Ukrainian regulation is set up. 15% goes to Ukrhydroenergo, to (support – Ed.) large hydro power generation facilities, as they sustained great damage, and money is really needed there. However, everything else will go to Energoatom. Energoatom hasn’t sustained any significant damage from hostilities, from attacks,” Oleksandr Kharchenko explained.

According to Oleksandr Kharchenko, before approaching any changes in tariffs for the population, it would be expedient to first change the system – “to remake it so that there is a channel for this money to be actually used in restoration of generation capacities, and then to change the tariffs. Then, only after explaining to people why this is the case, and how this money will be used to restore generation capacity, should this increase be implemented.” 

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