Tariffs for electricity and rail transportation will increase in the new year: what you need to know
18 December 19:23
The largest state-owned monopolies – Ukrzaliznytsia, GTS Operator of Ukraine, and Ukrenergo – plan to raise tariffs in 2025, which will negatively affect business, lead to higher prices and accelerate inflation. This is stated in the material of Censor.NET, Komersant ukrainskyi reports.
The reasons for the increase are different, but questions remain about the transparency of tariff calculation.
The National Energy and Utilities Regulatory Commission (NERC) has approved a 26% increase in Ukrenergo’s electricity transmission tariff and a fourfold increase in the gas transportation tariff of the GTS Operator. The management of Ukrzaliznytsia initiated a 37% increase in freight transportation tariffs.
Media reports suggest that state-owned monopolies should focus on finding new sources of funding, cutting costs, and improving efficiency rather than raising tariffs. Raising tariffs would deal another blow to the Ukrainian economy, which is already slowing its recovery.
Meanwhile, the heads of state-owned monopolies are explaining the need for tariff increases, but their explanations lack transparency. The public and businesses have reason to doubt the data, and the financial plans of the state monopolies are unclear. Increasing tariffs will reduce the competitiveness of Ukrainian exporters, affect the stability of the Ukrainian economy, and lead to a reduction in foreign exchange earnings.
To prevent uncontrolled tariff increases, it is necessary to freeze tariffs, audit state-owned monopolies, and ensure transparency in the tariff setting process.
