New Head of the NEURC: Should we expect another tariff increase?

2 August 15:17
EXCLUSIVE

Former First Deputy Energy Minister Yuriy Vlasenko has been appointed chairman of the National Energy and Utilities Regulatory Commission (NERC). on 2 August, members of the commission supported his candidacy in a secret ballot, reports Komersant ukrainskyi

Komersant ukrainskyi asked experts what this appointment means and whether it is related to the likely increase in tariffs, as well as the overall situation in the Ukrainian energy sector.

MP Yuriy Kamelchuk, a member of the Verkhovna Rada Committee on Energy, Housing and Utilities, praised the new appointment, calling Vlasenko a fully independent political figure:

“In general, I can assess him quite well. His policy was sometimes even quite independent of the minister, in some decisions. That is, he allowed himself some independence of thought.”

The MP does not link this appointment to the situation in the energy sector and the tariff increase.

“I don’t think these are related things. Changing a member or the head of the National Energy and Utilities Regulatory Commission does not necessarily lead to changes in tariffs,” he said,

– kamelchuk said.

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Energy expert Gennadiy Ryabtsev, in turn, draws attention to the peculiarities of the NEURC’s functioning, which is a collective body, which means that the position of its chairman is not critical.

“The NEURC chairman only chairs meetings, he does not have separate executive powers. The collective body of the NEURC makes decisions, so it’s ridiculous to say that he is being removed because of unpopular decisions. But there is a vote, so the entire composition needs to be changed. In my opinion, this assumption is not true.”

Ryabtsev also categorically denies the alleged influence of the Ministry of Energy on the NEURC, despite the fact that the newly appointed chairman came to the commission from the ministry.

“The Ministry of Energy has nothing to do with the NEURC at all. That is, [the NEURC] is a body that does not depend on any actions of the Ministry of Energy. Deputy ministers are exclusively within the scope of the Minister of Energy’s authority. And the NEURC members are not appointed by the Minister of Energy. And the regulator is independent, according to the law. Including in its personnel policy,”

– says the expert.

Instead, Ryabtsev draws attention to certain problems in the appointment process:

“There are some strange things when the NEURC members already recommended for approval are not appointed for a long time. This raises the question of non-compliance with the Law of Ukraine on the NEURC.”

Thus, experts agree that Vlasenko’s appointment to the NEURC should not lead to radical changes in the commission’s work or its tariff policy. At the same time, the appointment draws attention to the regulator’s independence and the procedures for approving its members.

Situation in the Ukrainian energy sector

on 29 March 2024, Russia resumed its attacks on the Ukrainian energy sector, carrying out the most massive shelling in the entire period of the full-scale war. In particular, DniproHES and other Ukrainian energy facilities were hit. Since then, Russia has been regularly shelling Ukrainian energy infrastructure.

For example, the Russians destroyed the Trypillia and Zmiiv thermal power plants, causing Centrenergo to lose 100% of its generation. Also, 5 of DTEK’s 6 thermal power plants were severely damaged.

After that, power outages started again in Ukraine, Ukrenergo introduced blackout schedules and the government raised electricity tariffs by 60% at once.

At the same time, the Cabinet of Ministers decided to build two new units at the Khmelnytsky N PP and has already received the approval of the relevant parliamentary committee. The Razumkov Centre has criticised these plans, but some experts believe that only traitors or scoundrels are against the construction of nuclear power plants today.

Остафійчук Ярослав
Editor