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Ukrainian Energy Agency Cancel Plans to Hike Gas, Electricity Rates

Posted on: Monday, 30 January 2006, 12:00 CST

Text of report by Interfax-Ukraine news agency

Kiev, 30 January: The Ukrainian National Commission for Energy Regulation (UNCER) today cancelled its decision to hike electricity and natural gas rates for the population which still had to come into force.

This move means that energy retail prices for the population will remain the same: 0.156 hryvnyas per 1 kWh for electricity, 0.175 hryvnyas for 1 cu.m. of natural gas (if the customer has a gas meter) and 0.190 hryvnyas per 1 cu.m. of natural gas (if the customer has no gas meter).

It has been reported earlier that by the end of December 2006 the UNCER had decided to raise the electricity rates for the population by 20 per cent. The natural gas prices were to be raised by 25 per cent. The UNCER calculated that the natural gas retail prices, which had not been changed since 1999, cover just 50 per cent of the natural gas production, transportation and distribution costs. The retail electricity rates covered 42 per cent of the production, transportation and distribution costs.

The retail prices for natural gas were to be raised from 175 to 220 hryvnyas per 1,000 cu.m. for the customers who have a gas meter and from 190 to 240 hryvnyas per 1,000 cu.m. for the customers without a meter.

But the Ukrainian Justice Ministry refused to register the UNCER resolution on energy rates before they were approved by the Federation of Trade Unions of Ukraine. Besides, the Supreme Council, followed by the Cabinet and the president, also disapproved of raising the energy rates in the run-up to the March parliamentary election.

The Ukrainian National Bank's official exchange rate is 5.05 hryvnyas per dollar.

Source: BBC Monitoring Former Soviet Union

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