The new tariff, which currently stands at UAH 4.32/kWh, only covers the cost of production, transmission and distribution, while the market value of one kilowatt-hour is over UAH 7.5. This was stated by Deputy Minister of Energy of Ukraine Svitlana Hrynchuk. 

“The current tariff covers the cost of production of 1 kWh by two state-owned energy companies, Energoatom and Ukrhydroenergo, as well as electricity transmission and distribution. The tariff consists exclusively of the cost of production, without any extra charge. The market price of one kilowatt-hour is more than UAH 7.5,” the Deputy Minister said.

At the same time, she said, the additional funds received by the energy sector by raising the electricity tariff for households will be used for the repair campaign to prepare the power system for winter.

“The tariff increase is a forced step, the only reason for which is the significant losses in the power system after the enemy shelling,” emphasized Hrynchuk.

She reminded that due to large-scale shelling of the energy infrastructure after March 22, 2024, Ukraine lost about 9 GW of capacity. In particular, thermal power plants of the state-owned company Centrenergo and hydroelectric power plants of Ukrhydroenergo were affected.

Hrynchuk noted that the summer will be a difficult period, as a significant amount of generation has been damaged or completely destroyed, and it will take some time to recover.