PJSC ArcelorMittal Kryvyi Rih (Dnipropetrovsk region) calls on the government to prevent the introduction of a unified tariff for the distribution of electricity, as a result of which large enterprises will suffer.

According to a press release, large industry, in particular, enterprises of the mining and metallurgical complex, is the key to the functioning of the country's economy during the battle with the aggressor.

Metallurgical enterprises can continue to support the economy and pay billions in taxes, funds from which are allocated for weapons, drones, equipment and support for the military, only if their operating conditions are stable. But recently, decisions have been made and planned to be made that not only do not contribute to this, but, on the contrary, can lead to a stop in production at mining and metallurgical enterprises.

It is recalled that recently energy-intensive enterprises, including ArcelorMittal Kryvyi Rih, appealed to the Cabinet of Ministers with a request to revise resolution No. 611 of May 30, 2024, which increased the mandatory volume of purchase of imported electricity from the total volume of consumption to 80% to ensure its supply without restrictions due to a shortage of electricity in the energy system.

“This decision has led to a significant increase in the cost of purchasing electricity, which negatively affects further production, which becomes significantly unprofitable, and the products are uncompetitive in the global metal products market. In such a situation, the company will be forced to significantly reduce production with employees being idle, which will have a negative multiplier effect both on revenues to budgets of all levels and the flow of foreign exchange earnings into the country, and on the social aspect. So far there has been no reaction from the Cabinet of Ministers,” the company stated.

According to the report, it became known that another decision was being prepared, which would further damage such large strategic energy-intensive enterprises as ArcelorMittal Kryvyi Rih. Information has been received that the National Energy and Utilities Regulatory Commission of Ukraine (NEURC) has already developed a decision on introducing a unified tariff for the distribution of electricity for large industry, small and micro businesses.

Currently, the tariff for electricity distribution is divided into voltage classes – first and second, which corresponds to the existing practice of tariff setting for electricity distribution services in the EU. The first class is large industry, which is connected to high voltage power grids and consumes much more electricity. The tariff for the first voltage class is approximately five times less than for the second. The tariff is divided and this is logical, because much less infrastructure is used to supply electricity to large enterprises, and losses of electricity in the power grid for its distribution are significantly less than in class 2. While the tariff for second class allows you to cover the costs of delivering electricity to small and micro businesses.

According to information received by the company, the NEURC wants to establish a single tariff for both groups of consumers. That is, a one-time solution is proposed to increase the tariff for large industry by 5 times! This will be a devastating blow to large industry and will have an extremely negative impact on the country's economy.

ArcelorMittal Kryvyi Rih asks the government not to allow the NEURC to make the decision that will harm the economy and contradict European rules, which Ukraine is actively integrating into its energy sector.