On May 12, 2020, a meeting of the Committee on Energy, Housing and Utilities Services was held by video conference with the participation of the Prime Minister of Ukraine, Denys Shmygal, and the acting Minister of Energy and Environmental Protection Olga Buslavets.

Denys Shmygal, Prime Minister of Ukraine, reported on the latest actions of the Government: the Projected Electricity Balance for 2020 was approved; the full-fledged work of the Anti-Crisis Energy Staff has begun. He noted that the cost of electricity for the household consumers will remain unchanged. He commented on the Projected Electricity Balance: the consequences of falling consumption and a warm snowless winter had a great impact on thermal power plants and hydroelectric power plants, only RES producers received a larger share in the Electricity Balance.

Prime Minister has answered questions:

– from Kucherenko A. on debt arising both before the introduction of a new market model and after. Manageability of Ukrenergo. Granting permissions to connect renewable energy facilities.

Denys Shmygal supported Kucherenko A. about the need to verify the process of granting Ukrenergo permissions for greed connection of  renewable energy facilities, which led to existing distortions. He noted that “green” energy is expensive and now replaces low-cost nuclear energy, which the country cannot afford now. The PM said that he is going to give an order to Ukrenergo on the provision of a report on the granting of permits.

from Gerus A. regarding the price for industrial consumers

The Prime Minister believes that it is necessary to allow Energoatom to enter the market of bilateral agreements, as well as RES producers. The price for industrial consumers will be lower than in March 2019.

Skorokhod A. concerning the issue of increasing the tariff of Ukrenergo and its impact on electricity prices

Denis Shmygal commented that Ukrenergo’s tariff will not significantly affect the final price of electricity. In addition, businesses and non-household consumers have to pay a market price. The PM stressed that the Government will not change the cost of electricity for household consumers this year.

Olga Buslavets informed that a meeting was held last week with representatives of the nuclear industry on pressing issues: limitation of production and other steps planned by the Government. She also said that the economic balance of the electricity market will be considered at the next meeting of the Anti-Crisis Energy Staff.

Andriy Gerus noted that it is necessary to distinguish the price (formed on the market) and the tariff (approved, includes the price of transportation and taxes) for electricity.

The Committee’s deputies were sent for consideration the protocol of the decision based on the results of the first meeting of the Anti-Crisis Energy Staff. Most committee members supported this document.

The text of this protocol is not available in open sources. Among the planned activities announced at the meeting was the transition to the financial model of PSO, the revision of the Ukrenergo tariff, the resolution of the debt problem, the possibility of entering the market of bilateral agreements for Energoatom and RES producers.

You can see the recording of the meeting at the link: https://bit.ly/3cvExZR