The National Energy and Utilities Regulatory Commission (NEURC) of Ukraine has approved a significant increase in the transmission tariff set by the National Energy Company (NEK) “Ukrenergo.” This decision, effective from July 1, 2026, will raise the tariff from 742.91 UAH per MWh to 903.53 UAH per MWh, marking a 21.6% increase.
According to Alexander Trokhymets, Vice President for Energy at the Ukrainian National Committee of the International Chamber of Commerce (ICC Ukraine), the tariff adjustment is not merely a choice between raising or maintaining rates. Instead, it represents a critical decision between funding necessary expenditures today or accumulating debt that will need to be addressed in the future.
Trokhymets emphasized the importance of examining not just the percentage increase but also the structure and purpose of the tariff. He pointed out that the proposed tariff includes a reduction in the public service obligation (PSO) component for industrial renewable energy facilities, suggesting that linking the tariff review solely to financing large-scale renewable energy projects is misleading.
Approximately 70% of the tariff increase is attributed to the costs associated with compensating for technological losses in electricity transmission, which the system operator is mandated to cover. Trokhymets warned that if these costs are not incorporated into the tariff, the issue will persist. “Ukrenergo” will still need to ensure the functionality of the transmission system, raising questions about the sources of funding for these obligations.
He also noted that about 20% of the tariff increase is related to fulfilling special obligations to support households that have installed solar power plants and sell electricity under the “green” tariff scheme. This reflects the government’s commitment to previously established obligations to citizens.
Trokhymets reiterated that the transmission tariff is formulated in accordance with legislative requirements, and the regulator’s role is to verify the justification of these costs.
On May 26, NEURC approved the tariff increase, which has been a topic of discussion amid ongoing financial challenges in the Ukrainian energy sector. As of now, the total debt in Ukraine’s energy sector exceeds 300 billion UAH, with around 140 billion UAH attributed to the electricity sector alone. Acting Minister of Energy Artem Nekrasov has previously stated that debts in the energy market and delays in payments to producers remain significant barriers to attracting investment in Ukraine’s energy sector.
The upcoming increase in Ukraine's energy transmission tariff reflects a complex decision-making process amid significant financial challenges. Experts emphasize the need to balance immediate funding requirements with the risk of accruing future debts, highlighting the broader implications for the energy sector's stability.