11:04 24.12.2020

Govt may raise electricity price for Energoatom under renewed PSO, but tariffs for population not to increase yet – source

2 min read
Govt may raise electricity price for Energoatom under renewed PSO, but tariffs for population not to increase yet – source

At one of the last meetings in 2020, the Cabinet of Ministers will consider the issue of amendments to the model of imposing Public Service Obligations (PSO) on the electricity market and is still inclined to make a decision "without increasing tariffs for the population," a source in the government told Interfax-Ukraine.

"On December 31, the period of validity of PSO on the electricity market ends. It is necessary to make a new decision or to extend the current model, otherwise there will be no restrictions to fully switch to market mechanisms," the agency's source said.

According to it, there is no other way out but to consider this issue at a government meeting on Monday, December 28, which may become the last meeting this year.

At the same time, the source said that the final position on this issue of recently appointed Energy Minister Yuriy Vitrenko, who held talks with the IMF mission on Wednesday, is still unknown.

"The issue is difficult, discussions are underway. But the government is inclined to not change anything in terms of prices for the population. So far there is no talk about this. The idea to cancel the preferential price for the first 100 kWh is good, but so far it has not been supported from a political point of view," the agency's source said.

According to the source, a possible option is to increase tariffs on a progressive scale depending on the volume of consumption.

The source said that, most likely, the price at which Energoatom sells electricity to the Guaranteed Buyer under the PSO will be increased.

At the same time, another source said that as another option, the possibility of raising prices for the population up to 50% is considered, but after the end of the heating season.

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