Prime Minister of
Ukraine Volodymyr Groysman urges the leadership of the National
Energy and Utilities Regulatory Commission of Ukraine (NEURC) to reconsider tariff
calculation as the said RAB formula
is insufficient and may lead
to unreasonably high electricity tariff rates for
RAB-tarrifs are unfair, said the
Head of Government.
I do not see any sound
argument for such calculations. This is my
position. I urge the revision of
of a new stimulating tariff regulation, so called RAB formula for regional
energy companies is an exclusive prerogative and competence of the NEURC, which
is an independent regulatory body for tariffs setting. The Government bears no
relation to the adoption of the said decision or to its publication.
existing legislation, the publication of the decision adopted by the NEURC in
the government newspaper "Uriadovyi Kurier" (Government Courier) is obligatory and for
this purpose the Government's approval is not required. As regards the said
issue, the Cabinet of Ministers of Ukraine supports the idea of stimulating
tariff formula, which envisages attraction of additional investments for the
construction and modernization of the infrastructure of electric grids and
stimulating the cost effectiveness of electricity distributing companies.
However, the Government does not back the form of the decision in which it was
adopted by the National Energy and Utilities Regulatory Commission, and this position
has been repeatedly voiced publicly. The equal earnings yield to the tune of
12.5 % set by NEURC both for the former and new assets will lead to groundless
increase in tariffs for industry, which will directly affect consumers through
rising prices for goods and services.