The average cost of a standard connection for the town is 1.08 thousand UAH / KW, and non – standard-of 1.84 UAH / KW

Photo: Oleksandr Vizir / Facebook

If Ukraine will introduce RAB-tariff, it can stimulate the development of electricity networks and reduce the cost of connection, because now it is expensive because of the deterioration of networks, said July 1 in his Facebook Chairman of the Union of “Smart grids of Ukraine” Oleksandr Vizir.

“The issue of connecting to the grid for new users today is quite acute. They complain that it is very expensive. Especially for large industrial projects that require lots of power, and therefore, non-standard connection. Often from the business you can hear that connection in Ukraine is more than, for example, in the Baltic States. There’s a simple explanation: because of chronic under-investment the infrastructure of the networks is outdated and is worn out by 80% – we have no new lasting networks for industry, which could use a little boost or just to connect to them. Under powerful new industrial project the entire infrastructure need to be rebuilt. And therefore it is expensive”, – he wrote.

If you implement a scheme of tariff on the principle of stimulation, not “cost plus”, the network will be built faster and new customers will not have to do it at their own expense.

“According NKREKU, now the average cost of a standard connection for the town is 1.08 thousand UAH / KW, and non – standard-of 1.84 UAH / KW. During the transition to feed-in tariffs the cost of a standard connection may go down to 20%, and non – standard- even more!” – said the Vizir.

⚡️Питання підключення до електромереж для нових споживачів сьогодні стоїть досить гостро.‼️Вони нарікають на те, що це…

Posted by Олександр Візір on Wednesday, July 1, 2020

Incentive regulation is a tariff mechanism based on long-term regulation of tariffs. This method is aimed at attracting investments for construction and modernization of infrastructure networks that transmit energy, and stimulation of efficiency of expenses distribution and supply companies.

According to the national Commission, the deterioration of the networks in Ukraine is 80%, said in 2017 the air NewsOne, the then Minister Dmitry Vovk.

According to the national Commission on energy since 2012, is considering a move to the stimulating tariff, but it is still not introduced.

On 25 June, the Secretary-General of the European industry Association, Eurelectric Christian ruby said that in order for Ukraine to succeed, it must solve the issue of stimulating investment in the electricity network.