The new IMF Extended Financing programme traditionally views the energy sector in the context of Ukraine's macroeconomic stability. This programme provides for improvement of market models in the electricity and natural gas sectors, as well as gradual transition to market prices and rates at the second stage of the programme, while retaining subsidies to vulnerable consumers.
Emphasis is placed on the need to increase the Ukrenergo tariff to cover the difference in prices for the RES sector. At the same time, the goal is to improve corporate management in the gas sector, first of all, for the gas transportation system operator, with the creation of the Supervisory Board by July 2023.
The goals of the IMF programme cannot be achieved without implementation of the plan of gradual abandonment of cross-subsidies and transition to market prices in the coming months. It also requires independence of the NERC, eliminating the possibility of administrative price regulation, and removal of distortions in the electricity and natural gas markets.
As long as political expediency prevails in pricing of energy resources, one cannot hope for significant investments in reconstruction and modernization of the energy infrastructure.
The fastest and most tangible consequences of implementation of the goals of macroeconomic stabilization will be seen in the petroleum products market. The increase of VAT from 7% to 20% and restoration of the excise duty will boost prices, according to preliminary calculations: of gasoline — by UAH 11 per litre; diesel fuel — UAH 8 per litre, liquefied gas (LPG) — UAH 3 per litre. Such a rise in prices is expected from the 1st of July this year. It will lead to reduction in the sales of petroleum products and risks of expansion of the illegal market, to evade taxes.
https://razumkov.org.ua/komentari/energetychnyi-sektor-v-konteksti-programy-mvf
