If NERC does not adjust its regulatory policy, Ukraine’s energy system can be restored infinitely.

January 20, 2023

The regulator adopted the electricity transmission tariff for 2023 with a serious deficit.

The value of the approved tariff will not be enough to cover all the needs of Ukrenergo, which will primarily affect the state company and the energy system of Ukraine.

The occupiers destroyed a large number of Ukrenergo facilities, so the company needs funds to restore them.

Also, Ukrenergo has obligations to the renewable energy sector and must pay them for the electricity produced, but the adopted tariff will not allow the company to do this in full, and the debt to the RES sector will continue to increase.

According to the results of 2022, the level of payments to producers of electricity from RES slightly exceeded 50%. That is, "green" generation did not receive half of the funds for the electricity produced. This is UAH 18 billion, with VAT.

One of the reasons for these debts is in the deficient transmission tariff for Ukrenergo, which is approved by the NERC in this form on yearly. In 2022, the situation did not change. As a result, Ukrenergo’s debt reached UAH 12.4 billion.

The tariff for 2023 includes the expected price of electricity sale to the "Guaranteed Buyer" — UAH 3.15/kWh, and if this forecast does not come true, a deficit of UAH 12 billion will arise.

The regulator should as early as in the 2nd quarter set the transmission tariffs for Ukrenergo, covering all the company's obligations and needs for the restoration of damaged infrastructure. Will the Regulator meet this obligation?


Volodymyr Omelchenko

Director, Energy Programmes

Born in 1967 in Kyiv

Education: Kyiv Politechnic Institute, Department of Chemical Engineering (1992)

Author of over 50 scientific works and op-ed publications. Took part in development and implementation of international energy projects and scientific research in international energy policy


1992 – 1996 — worked in different positions in the mechanical engineering industry

1997 – 1998 — Head Expert of the Division of Oil, Gas and Petroleum Refining Industry of the Ministry of Economy of Ukraine

1998 – 2003 — Naftohaz Ukrayiny National Joint-Stock Company, in Charge of Oil Transportation Section

2004 – 2007 — Chief Consultant at the National Institute of International Security Problems of Ukraine’s NSDC

since February, 2007 — Leading Expert, Razumkov Centre. Director of Energy Programmes since 2013

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