Raw materials price drops, so there is no need to increase electricity price — Zhevago 

This was announced by entrepreneur Kostyantyn Zhevago on Espreso. 

“In the current scenario, where gas prices in Europe have dropped to 2021 levels and coal is trading below $100 on exchanges in Rotterdam and Australia, I fail to comprehend why the price of the final product should be increased when the cost of raw materials is decreasing. It makes no sense to me to raise electricity prices for vulnerable sections of the population and industries, particularly during wartime conditions when they are already struggling. Such a move would render the industry uncompetitive and result in job losses, negatively impacting civilian consumption,” as stated by Zhevago. 

Kostyantyn Zhevago emphasizes that Ukraine should adopt the principles of electricity tariff formation followed in Europe and the USA, where it is done through market mechanisms.

“By considering the average prices of coal, gas, and inflation over a ten-year period, and taking into account the significant electricity production by Energoatom and the availability of low-cost or market-priced Ukrainian natural gas from Naftogaz, we can establish a market-based electricity price for industries. This approach would help preserve jobs, generate local tax revenue, and contribute to the budget, enabling subsidies or compensation for fair electricity costs. It is crucial to learn from the experiences of Western countries and implement their practices in Ukraine, as our Western partners are currently providing economic and military assistance,” he said. 

• On May 30, the Cabinet of Ministers approved new electricity tariffs for the population, effective from June 1. The new tariff will be set at UAH 2.64/kWh.