{"id":22374,"date":"2020-06-18T13:05:28","date_gmt":"2020-06-18T10:05:28","guid":{"rendered":"https:\/\/euea-energyagency.org\/?p=22374"},"modified":"2020-07-06T17:48:20","modified_gmt":"2020-07-06T14:48:20","slug":"how-will-increasing-of-the-tso-tariff-impact-final-price-of-electricity","status":"publish","type":"post","link":"https:\/\/euea-energyagency.org\/en\/news\/market-news\/how-will-increasing-of-the-tso-tariff-impact-final-price-of-electricity\/","title":{"rendered":"How will increasing of the TSO tariff impact final price of electricity?"},"content":{"rendered":"<p>How will increasing of the TSO tariff impact final price of electricity?<\/p>\n<p>National Commission for State Regulation of Energy and Utilities supported the Memorandum between the Government of Ukraine and RES producers with warnings.<\/p>\n<p>This decision was made at the meeting of the State Regulator on 17<sup>th<\/sup> June 2020. Members of the commission Olga Babiy and Oleksiy Magda abstained from voting for it. One of the main warning expressed by the members of the commission was the increase of the TSO tariff (NPC \u201cUkrenergo\u201d) more than three times when revising it in order to repay debts to RES producers.<\/p>\n<p>Yuriy Kubrushko, Member of the Board of the European-Ukrainian Energy Agency, Managing Partner of IMEPOWER, expressed his expert opinion on this issue:<\/p>\n<p>If the National Commission for State Regulation of Energy and Utilities complied with the Law of Ukraine \u201cOn the Electricity Market\u201d from autumn 2019 and began systematically include sufficient RES compensation in the TSO tariff, we would see a moderate (+ 50 UAH per quarter) increase, which would be fully compensated by reduction of the price of DAM (from 1600+ UAH in September 2019 to the level of 1200+ UAH in May 2020, see the graphs below from the website of the Market Operator https:\/\/www.oree.com.ua\/)\u2026 And there would be no (i) crisis; (ii) no Guaranteed Buyer&#8217;s deficit; (iii) no debts.<\/p>\n<p>If the National Commission for State Regulation of Energy and Utilities and the Ministry fulfilled the investors&#8217; proposal in December 2019 \/ January 2020, there would be a need to increase the TSO tariff from 155 UAH to about 300 UAH for the whole 2020 (50 UAH is a saving from \u201cgreen\u201d tariff restructuring).<\/p>\n<p>Now it is June 2020, there is a need for the TSO tariff up to 300-350 UAH to cover current monthly payments + since March, accumulated 15 billion UAH of Guaranteed Buyer (NEURC estimates 16 billion UAH by the end of June). Thus, it is necessary to provide an additional 100-120 UAH to the TSO tariff to ensure repayment of this debt according to the schedule in the Memorandum.<\/p>\n<p>Conclusion 1: the longer NEURC waits, the more significant will be the increase of the TSO tariff.<\/p>\n<p>Conclusion 2: retail prices for commercial customers will not increase compared to autumn 2019, as the reserve is 400+ UAH due to the fall in the price of DAM, so the increase in the TSO tariff by 300-350 UAH is still within this reserve. \u201d<\/p>\n<p>Several graphs to familiarize and visualize the issue:<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-full wp-image-22616\" src=\"https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Draft-Law-3658-Impact-on-GB-2020-06-17-Eng-1-page-1_page-0001.jpg\" alt=\"\" width=\"2000\" height=\"1125\" srcset=\"https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Draft-Law-3658-Impact-on-GB-2020-06-17-Eng-1-page-1_page-0001.jpg 2000w, https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Draft-Law-3658-Impact-on-GB-2020-06-17-Eng-1-page-1_page-0001-300x169.jpg 300w, https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Draft-Law-3658-Impact-on-GB-2020-06-17-Eng-1-page-1_page-0001-1024x576.jpg 1024w, https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Draft-Law-3658-Impact-on-GB-2020-06-17-Eng-1-page-1_page-0001-768x432.jpg 768w, https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Draft-Law-3658-Impact-on-GB-2020-06-17-Eng-1-page-1_page-0001-1536x864.jpg 1536w, https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Draft-Law-3658-Impact-on-GB-2020-06-17-Eng-1-page-1_page-0001-30x17.jpg 30w, https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Draft-Law-3658-Impact-on-GB-2020-06-17-Eng-1-page-1_page-0001-356x200.jpg 356w, https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Draft-Law-3658-Impact-on-GB-2020-06-17-Eng-1-page-1_page-0001-1160x653.jpg 1160w, https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Draft-Law-3658-Impact-on-GB-2020-06-17-Eng-1-page-1_page-0001-89x50.jpg 89w, https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Draft-Law-3658-Impact-on-GB-2020-06-17-Eng-1-page-1_page-0001-650x366.jpg 650w, https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Draft-Law-3658-Impact-on-GB-2020-06-17-Eng-1-page-1_page-0001-1000x563.jpg 1000w, https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Draft-Law-3658-Impact-on-GB-2020-06-17-Eng-1-page-1_page-0001-50x28.jpg 50w\" sizes=\"(max-width: 2000px) 100vw, 2000px\" \/><\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-22361\" src=\"https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Taryf-OSP.jpg\" alt=\"\" width=\"620\" height=\"309\" srcset=\"https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Taryf-OSP.jpg 620w, https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Taryf-OSP-300x150.jpg 300w, https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Taryf-OSP-30x15.jpg 30w, https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Taryf-OSP-401x200.jpg 401w, https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Taryf-OSP-100x50.jpg 100w, https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Taryf-OSP-50x25.jpg 50w\" sizes=\"(max-width: 620px) 100vw, 620px\" \/> <img decoding=\"async\" class=\"aligncenter size-full wp-image-22357\" src=\"https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Serednozvazhena-tsina-za-2019-rik_6-mis.jpg\" alt=\"\" width=\"1280\" height=\"720\" srcset=\"https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Serednozvazhena-tsina-za-2019-rik_6-mis.jpg 1280w, https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Serednozvazhena-tsina-za-2019-rik_6-mis-300x169.jpg 300w, https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Serednozvazhena-tsina-za-2019-rik_6-mis-1024x576.jpg 1024w, https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Serednozvazhena-tsina-za-2019-rik_6-mis-768x432.jpg 768w, https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Serednozvazhena-tsina-za-2019-rik_6-mis-30x17.jpg 30w, https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Serednozvazhena-tsina-za-2019-rik_6-mis-356x200.jpg 356w, https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Serednozvazhena-tsina-za-2019-rik_6-mis-1160x653.jpg 1160w, https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Serednozvazhena-tsina-za-2019-rik_6-mis-89x50.jpg 89w, https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Serednozvazhena-tsina-za-2019-rik_6-mis-650x366.jpg 650w, https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Serednozvazhena-tsina-za-2019-rik_6-mis-1000x563.jpg 1000w, https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Serednozvazhena-tsina-za-2019-rik_6-mis-50x28.jpg 50w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/> <img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-22359\" src=\"https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Serednozvazhena-tsina-za-2020-rik-stanom-na-17.06.2020.jpg\" alt=\"\" width=\"1280\" height=\"720\" srcset=\"https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Serednozvazhena-tsina-za-2020-rik-stanom-na-17.06.2020.jpg 1280w, https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/06\/Serednozvazhena-tsina-za-2020-rik-stanom-na-17.06.2020-300x169.jpg 300w, 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National Commission for State Regulation of Energy and [&hellip;]<\/p>\n","protected":false},"author":135,"featured_media":22361,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[125],"tags":[],"class_list":["post-22374","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-news"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How will increasing of the TSO tariff impact final price of electricity? - EUEA - European-Ukrainian Energy agency<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/euea-energyagency.org\/en\/news\/market-news\/how-will-increasing-of-the-tso-tariff-impact-final-price-of-electricity\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How will increasing of the TSO tariff impact final price of electricity? - EUEA - European-Ukrainian Energy agency\" \/>\n<meta property=\"og:description\" content=\"How will increasing of the TSO tariff impact final price of electricity? 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