Ukrainian economy under threat: ICC Ukraine against increase in electricity transmission tariffs

The Ukrainian National Committee of the International Chamber of Commerce (ICC Ukraine) has opposed the increase in electricity transmission tariffs initiated by the National Commission for Energy and Utilities Regulation (NKREK). According to the organization, the planned tariff increase could have serious economic consequences for Ukraine, especially in times of war.

According to the draft decision of the NKREC, electricity transmission tariffs could increase by 26% in 2025, which would lead to an increase in the price from UAH 528.57 to UAH 665.27 per MWh. This decision was approved on November 13, but ICC Ukraine believes that such an increase is unjustified and threatens the stability of the Ukrainian economy.

In particular, ICC Ukraine emphasized that the additional financial burden of over UAH 13 billion, which the tariff increase carries, could negatively affect the activities of many enterprises. This applies to companies that support the Armed Forces of Ukraine and are important for the country's post-war recovery. Moreover, the current economic situation, in particular the crisis in key export markets, may make it difficult for businesses to adapt to new conditions.

The increase in electricity tariffs will also threaten the position of Ukrainian enterprises in international markets, as the increase in energy costs will only deepen economic problems associated with falling demand and falling prices for key export goods, such as grains, metals and ore.

ICC Ukraine experts analyzed the structure of the electricity transmission tariff and identified significant potential for optimizing Ukrenergo's costs. In particular, it is proposed to reduce costs for compensation for technological losses by conducting audits and combating abuse, which will allow for significant savings. In addition, the organization advocated reducing the discount rate for energy for households using renewable energy sources, as well as revising the forecast for their generation volumes.

ICC Ukraine paid special attention to the issue of financing loan servicing costs during the war. According to them, including such costs in the tariff structure is unacceptable. The organization proposes to restructure loans and postpone payments for the period after the end of martial law, and also proposed financing settlements with ENTSO-E from the proceeds from the sale of access to interstate intersections, and not from the transmission tariff.

In accordance with its conclusions, ICC Ukraine calls on the National Commission for the Regulation of Energy and Power Generation of Ukraine to reconsider the decision to increase electricity tariffs and maintain the current tariff at the level of 528.57 UAH/MWh in 2025. This will allow maintaining stability for Ukrainian business and supporting the economy in conditions of military aggression.