No grounds for drastic growth in Energoatom's tariff
The National Commission for the State Regulation of Energy, Housing and Utilities Services (NCER) had grounds for refusing to approve the proposal of National Nuclear Generating Company Energoatom to increase its tariff from 54 kopecks per kWh to 71.5 kopecks per kWh, Head of the commission Oksana Kryvenko has said in response to critics from Energoatom Head Yuriy Nedashkovsky.
"We do not understand why the administrative expenses of a state-owned company should unexpectedly grow by 40%? Why should the company's profits increase 2.5 times? Why does the price for the fuel component significantly exceed the import parity?" Kryvenko wrote on her Facebook page.
According to her, the profitability of the company in the first half of 2018 was 16%, although the current rate provides 10%. The head of the NCER said that nuclear scientists used only 10% of the tariff set in the structure to increase the safety of nuclear power plants; they saved on repairs, maintenance and operation, a comprehensive safety improvement program and remuneration. She added that the average salary at Energoatom is UAH 18,000 and it is the highest in the industry.
In response to Nedashkovsky's criticism of the Rotterdam + formula for binding the thermal generation electricity price to the coal price on the international market, Kryvenko recalled that a similar formula was used to calculate the nuclear generation tariff. She called the demands of the Energoatom head a Rotterdam + 50% formula.
The head of the NCER said that most of the raw materials for the manufacture of fuel for nuclear power plants are purchased abroad at the market price, where the spot price is $71, while Energoatom offers to set the price 50% higher - $100-120. "I don't think that the Ukrainian consumer should finance the corruption system of the shell companies, which was formed around the supply of fuel for nuclear generation," she said.
According to her, Energoatom speaks about the need to raise the tariff to 108 kopecks per kWh with VAT, with the current tariff for households being 90 kopecks per kWh for consumption up to 100 kWh, not taking into account Ukrenergo and distribution companies' tariffs.
"There is no reason for a radical increase in tariffs for nuclear power plants. The commission will continue protecting consumers," Kryvenko said.