In Ukraine, electricity tariffs were raised for three months: details.

The National Commission for State Regulation in the Energy and Utilities Sectors (NERC), is changing the procedure for forming the price of electricity for consumers of the supplier of "last resort" from October 1 to the end of 2024. This will lead to an increase in electricity prices.

According to the NERC's decision, the coefficient used to determine the price of electricity for last resort consumers is being increased from 1.25 to 1.5 for the next three months. This coefficient applies to the weighted average price of electricity on the day-ahead market (DAM).

Currently, the price of electricity for last resort consumers is calculated based on the weighted average actual price of the DAM for the first 20 days of the previous billing period, multiplied by a coefficient of 1.25. This coefficient takes into account the risks of price fluctuations on the balancing market (BM) and DAM.

NERC explains the need to increase the coefficient by the consequences of large-scale shelling of Ukraine's energy system, which led to an increase in the cost of electricity to balance imbalances. In addition, the supplier of "last resort" – the state-owned enterprise "Ukrinterenergo" – due to acquiring "Default" status, is forced to buy electricity for its consumers exclusively on the balancing market.

The state-owned enterprise "Ukrinterenergo" has appealed to the NERC with a proposal to increase the coefficient, emphasizing that since April 2024, the cost of electricity to balance imbalances exceeds the weighted average actual price of the DAM even considering the existing coefficient of 1.25.

In addition, "Ukrenergo" proposed new tariffs for the transportation of electricity.