The national Commission, carrying out state regulation in spheres of power and utilities (NKREKU) offers from 1 January 2018 to reduce the average rate of NEK “Ukrenergo” is 19.1% compared to the current rate – from 6,933 kop/kW·h to 5,612 kopecks/kWh (without VAT).

Discussion of draft decisions on tariffs and the investment program of NEC for the year 2018 was held at the Commission meeting in Kyiv on Thursday. According to the procedure, then within 20 days the national Commission will accept comments and suggestions to the draft decisions, followed by open discussion. Approval of tariffs and investment programs for the year 2018 to be held in late November.

Read the news also on the website “Energoinform”

At the same time, according to the published on the website of the national Commission materials of the Ministry of energy proposes to reduce the rate of 10% to 6.24 kopecks/kWh .

The electricity transmission network of NEK in 2018 is projected at 115 billion kWh, which is 3.1% more than the expected transfer in 2017 (111,5 billion kWh).

The head of NEK Vsevolod Kovalchuk in the meeting of the Commission noted that the company does not agree with the proposals of the national Commission on adjustment of the tariff structure. According to him, in particular, we are talking about the planned imposition on the company of a fine in the amount of 296 million UAH.

“The imposition of the penalty is contrary to paragraph 9.2.1 of the methodology for calculation of tariffs because it does not concern, in principle, tariff. This penalty is proposed to impose the more effective use of loan funds last year for the investment program. Our entire argument has already been granted and we hope that you will consider it,” he said.

According to him, “Ukrenergo” also disagrees with the imposition of a penalty of UAH 27.6 million, which related to the payment of wages to employees of Donbass power system in accordance with the labour legislation.

V. Kovalchuk noted that NEC soon will also provide the Commission with further arguments regarding the tariff should include the cost of legal services associated with the claim to Russia for the lost in the Crimea assets of the company, as well as consulting services and studies to be performed in connection with the conversion of “Ukrenergo” in joint-stock company and the introduction of the new electricity market and integration into the ENTSO-E.

In turn, the head Dmitry NKREKU wolf said that the Commission was prepared at the request of the company to conduct unscheduled checks on imposing a fine on UAH 296 million and expects additional legal arguments on the penalty 27.6 million UAH.

“Ukrenergo” performs the operation of trunk and interstate transmission lines, and centralized dispatching operation of the ECO. NEK is a state enterprise, which is managed by the Ministry of energy and coal industry.

The national Commission responsible for state regulation of activity of subjects of natural monopolies in the electricity, heat supply, oil and gas sector, centralized water supply and drainage, recycling and disposal of waste as well as ensures the implementation of price and tariff policy in these spheres.