The merger of the enterprises «Ukrmetallurgprom» has spoken out against the planned increase of the tariff for electricity transmission up to 665.27 UAH/МWt-hr. In case this decision is adopted, the annual expenses of Ukrainian metallurgical enterprises will increase by more than 1.6 billion UAH, which will have a negative impact on their competitiveness in the global market. This was stated in a letter from «Ukrmetallurgprom» to the head of the National Commission for State Regulation of Energy and Utilities, Yuriy Vlasenko. A copy of the document is available to the publication dsnews.ua.
The proposal to increase electricity transmission tariffs has been met with strong opposition from «Ukrmetallurgprom», one of the largest industrial unions in Ukraine. This decision, if approved, will have a severe impact on the competitiveness and financial stability of the country’s metallurgical industry.
According to the letter addressed to Yuriy Vlasenko, the head of the National Commission for State Regulation of Energy and Utilities, the proposed tariff hike will result in an increase of more than 1.6 billion UAH in annual expenses for Ukrainian metallurgical enterprises. This sharp increase in costs will greatly affect the ability of these companies to compete on the global market, which is already facing tough competition from other countries.
The current tariff for electricity transmission stands at 663.38 UAH/МWt-hr, and the proposal to increase it to 665.27 UAH/МWt-hr may seem like a small increase. However, for the metallurgical industry, which relies heavily on electricity for its operations, even the slightest increase can have a significant impact on their bottom line.
The metallurgical industry is a major contributor to the Ukrainian economy, accounting for approximately 10% of its GDP and providing thousands of jobs. By imposing such a substantial increase in tariffs, the government is essentially putting this important sector at a disadvantage and hindering its growth.
«Ukrmetallurgprom» has also highlighted the fact that other countries in the region such as Belarus, Russia, and Kazakhstan have much lower electricity tariffs for industrial consumers, giving their metallurgical industries a competitive edge. This puts Ukrainian metallurgical enterprises at a significant disadvantage, making it difficult for them to compete in the global market.
Moreover, the proposed tariff hike comes at a time when the country’s metallurgical industry is already facing numerous challenges due to the ongoing COVID-19 pandemic. The industry has been struggling with decreased demand and disrupted supply chains, and this increase in tariffs will only add to their woes.
In its letter, «Ukrmetallurgprom» has urged the National Commission for State Regulation of Energy and Utilities to reconsider its decision and take into account the negative impact it will have on the country’s metallurgical industry. The union has also proposed alternative solutions, such as introducing differentiated tariffs for enterprises with different electricity consumption levels.
If the proposed tariff hike is not reconsidered, it will not only harm the competitiveness of Ukrainian metallurgical enterprises but also have a ripple effect on the country’s economy as a whole. The increased costs for these enterprises will eventually be passed on to consumers, leading to inflation and a decrease in purchasing power.
In conclusion, the proposal to raise electricity transmission tariffs to 665.27 UAH/МWt-hr has been met with strong opposition from «Ukrmetallurgprom». The increase in costs will have a severe impact on the competitiveness of the country’s metallurgical industry, hindering its growth and ultimately affecting the economy as a whole. It is important for the National Commission for State Regulation of Energy and Utilities to carefully consider the concerns raised by «Ukrmetallurgprom» and find a solution that is beneficial for both the industry and the country.