Ukrenergo's Transmission Tariff for 2025 – the Latest Version Provides for an Increase of Almost 30%

The relevant draft resolution of the NEURC was submitted to its meeting on Wednesday, December 10.
Thus, the transmission tariff, if approved, will be 28.4% higher than the current one in 2024 (UAH 528.57/MWh) and 2% higher than the one approved at the meeting on November 13 (UAH 665.26/MWh).
According to the justification for the new draft, the costs of fulfilling special obligations for paying for renewable electricity, which account for the largest share of the tariff, have increased by almost UAH 1.5 billion.
While the project approved in November envisaged UAH 23.7 billion to support industrial RES generation, the updated version of the project amounts to UAH 25.1 billion.
As clarified by the Regulator, the updated forecast volume of electricity supply by producers under the feed-in tariff mechanism introduced in 2024 along with the feed-in premium mechanism was taken into account.
The amount of payment for electricity for household SPPs remained at the previously approved level of UAH 6.98 billion.
For comparison, in 2024, these figures amounted to UAH 12.3 billion and UAH 3.93 billion, respectively.
The justification also states that the tariff was recalculated based on the performance of the NPC for 9 months of 2024, and not half a year, as was done earlier.
However, the tariff scheduled for consideration on December 10 is 13% lower than the one initially proposed by Ukrenergo (780.41 UAH/MWh).
Besides, at this meeting, the Regulator is planning to set the electricity transmission tariff for "green" metallurgy at UAH 351.90/MWh, which is almost at the level of the approved one, as well as the dispatch tariff – at UAH 92.26/MWh, which is 3% lower than the approved one.
As reported by Energoreforma, on November 13, the Regulator approved a 3.3% reduction in Ukrenergo's electricity transmission tariff for 2025 for "green" metallurgy, down to 352.73 UAH/MWh (currently 364.7 UAH/MWh), as well as a 9% reduction in the dispatch tariff, down to 95.07 UAH/MWh (currently 104.57 UAH/MWh).
In a blitz interview with Energoreforma in early October, Ukrenergo CEO Oleksiy Brekht said that the NPC proposes an electricity transmission tariff for 2025 of 780.41 UAH/MWh and expressed hope that the system operator and the national regulator will be able to reach an agreement on its establishment to be able to pay for electricity from industrial RES plants, which is underfunded in the tariff by about half.
At the time, O. Brekht emphasised that "our task for the next year is to come out with a break-even tariff, with the ability for the company to fully meet its objectives in the electricity market." At the same time, he suggested that "the discussion with the Regulator will reduce the tariff a bit."
The industry traditionally opposes raising the transmission tariff.