Households pay only 46.2% of power generation cost as of early 2019

The electricity tariffs for households as of early 2019 covered its cost (generation and distribution) only by 46.2 percent, according to a prospectus for the issue of Ukraine’s eurobonds, a copy of which has been sent to Interfax-Ukraine.

The difference in tariffs for the general population between fixed and market levels is compensated by energy supply companies through endowment mechanisms at the expense of industry, railway transport, budget institutions and other consumers, which pay almost 30 percent more for electricity, according to the document.

In January 2016, 2017, 2018 and 2019 the electricity tariffs levied on households represented 30.8 percent, 43.9 percent, 51.7 percent and 46.2 percent, respectively, of the actual cost of electricity production, transfer and supply. As at March 31, 2015 and Sept. 30, 2015, the electricity tariffs levied on households represented 20.3 percent and 26 percent, respectively, of the actual cost of electricity production, transfer and supply.

According to the market regulator, in 2018, the subsidized certificates (the sum paid by non-households to compensate for the tariffs of households) exceeded Hr 45 billion. The forecast for 2019 is around Hr 55 billion.

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