Energy Minister suggests raising electricity tariffs

Ukrainian Energy Minister Herman Galushenko gave an interview to Bloomberg, in which he did not rule out an increase in electricity tariffs.

According to him, the total losses from the latest Russian bombings have not been officially calculated. However, according to Galushchenko, they are already estimated at billions of hryvnias and may continue to grow. Ultimately, he believes, the scale could reach billions of dollars.

Galushchenko said that Ukraine is looking for the energy equipment it needs around the world, including in neighboring countries, to replace damaged equipment.

“But this search may be pointless if the country does not have sufficient air defense,” he said.

According to Galushchenko, Russia's goal is to destroy Ukraine's economy. He added that greater damage to the energy system would make it more difficult to meet peak consumption this summer.

“Depending on the situation in July and August, we will ask people to save as much as possible. The Russians will not be able to cause a repeat of the power outages of 2022 and 2023. Even in the event of huge losses, we will have base generation that will cover from 30% to 50% of our needs,” the minister said.

Galushchenko also did not rule out increasing electricity tariffs for the population.

He said the government is exploring various ways to finance the renovation of its energy assets.

Kyiv almost doubled the price of electricity for industry last June after the winter attacks. But today, Galushchenko says, the situation is even more difficult: “We have lost a lot of hydroelectric production and are forced to carry out scheduled repairs of nuclear power units.”.

Ukraine plans to build two more nuclear units at the Khmelnytskyi NPP, using existing equipment.

Officials say one of the units is almost ready. Last July, Bulgarian lawmakers approved a plan to abandon a long-standing project to build a nuclear power plant in the Danube town of Belene and to negotiate the sale of equipment to Ukraine. The plan called for the sale of two reactors, steam generators and other equipment.

“When we have a block building, it will take us two and a half years to put the block into operation, which could add one gigawatt to the electricity supply,” said Galushchenko.

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