The National Commission for Regulation of Energy and Utilities (NKREKP) is planning to approve these rates for 2017 today.
For example, the connection cost for1 kW of capacity from Kyivoblenergo will be more than 5,000 hryvnas. And in Kyiv – the price will increase from 41 up to 3,000 compared to the previous year according to the Kyivoblenergo’s report for the first half of 2016 published on their website.
As explained by the Energy sector’s head Oleksiy Orzhel, this decision will have a negative impact on the investment climate in Ukraine and, actually, will make it impossible to create new production facilities and develop innovation sectors. First of all, it is referred to the renewable energy, because it generates the largest number of connections.
In addition, it may lead to increased prices in construction. In particular, the cost of 1m2 of residential area in new buildings in some regions may rise by 11%.
The Better Regulation Delivery Office believes that the rates proposed by the regulator are too high and unreasonable, and they will create additional barriers not only for businesses, but also for the country’s economic development. We call on the NKREKP to use a balanced approach and revise the connection cost to cut it.