An increase in tariffs for electricity transmission threatens business

A significant increase in the electricity transmission tariff for non-household consumers, approved by the National Energy Regulatory Commission (NERCP), has caused a wave of criticism from business and experts. In particular, the executive director of the National Association of Extractive Industries of Ukraine, Ksenia Orynchak, said that such actions could make Ukrainian products uncompetitive, and the country less attractive for foreign investors.

The increase in tariffs directly affects key sectors of the economy, in particular the extractive industry.

"Electricity is a basic factor for mining companies. Rising production costs can make the industry unprofitable, and investors simply won't invest in our economy. This undermines economic and national security," Orynchak explained.

The expert also reminded that a successful tariff policy is the key to attracting investments that could strengthen Ukraine's defense capabilities through economic growth and support of the interests of foreign partners.

The National Commission explains the decision by the need to raise the salaries of Ukrenergo employees and pay off loan debts.

However, the Federation of Employers of Ukraine insists that instead of raising tariffs, the company should consider alternative options, including credit restructuring and cost optimization.

Experts warn that such a sharp increase in tariffs can lead to:

  • cost growth in industrial enterprises;
  • loss of competitiveness of Ukrainian products on international markets;
  • decrease of investors' interest in the Ukrainian economy.
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