Current electricity tariff provides Energoatom with UAH 49 bln in additional profit and depreciation annually – Rada investigative commission's report

The current electricity tariff for household profit and depreciation balances at a rate of UAH 0.99 per kWh, which is about UAH 49 billion per year.

This is stated in the report of the temporary investigative commission of the Verkhovna Rada on the investigation of possible violations of the legislation of Ukraine in the formation and implementation of price and tariff policy in the energy and utilities sectors for six months of its work.

"The effect of the increase in electricity prices in 2023-2024 in the amount of UAH 88 billion were received directly by Energoatom (UAH 78 billion) and Ukrhydroenergo (UAH 10 billion), without any justification and plan for the further use of these funds for Energoatom," the document reads.

According to the MPs – the commission's members, the level of electricity prices for household consumers established by the Cabinet of Ministers of Ukraine as of May 2024 fully corresponds to the economically justified level.

"Given the dominant position in the electricity generation market of Energoatom and Ukrhydroenergo and their impact on competition in the electricity market: the level of economically justified prices for household consumers of electricity cannot correspond to the level of the market price, since the 'marketability' of such a price directly depends on the specified enterprises," according to one of the conclusions of the commission's report, for which 11 out of 14 MPs – members of the commission voted unanimously.

According to the authors of the commission's report, the service of reducing the price of electricity for the population (provisions on the imposition of special obligations, PSO) cannot be calculated relative to the level of the "market" price, and should be determined exclusively relative to the price that corresponds to the economically justified level determined in accordance with the requirements of the legislation.

As reported, on May 14, the Verkhovna Rada took note of the commission's report on the investigation of possible violations of the legislation of Ukraine in the formation and implementation of price and tariff policy in the energy and utility sectors over the six months of its activity.