YASNO Explains Why Power Bills Stay High Despite Blackouts

Why Aren't Electricity Bills Decreasing?

According to ХВИЛЯ: Serhiy Kovalenko, CEO of the energy company YASNO, has detailed the reasons why electricity bills remain unchanged for consumers, even during prolonged power outages. The primary factors are:

• A government-set fixed tariff;
• Deferred demand from consumers;
• Potential billing errors due to late meter reading submissions.

The Impact of the Fixed Tariff on Your Bill

The electricity tariff for households is a fixed price established by the government. The billing calculation multiplies this tariff by the volume of energy consumed. Consequently, even during blackouts, the amount on your bill will not change unless your actual consumption decreases.

Kovalenko also highlighted the concept of deferred demand. When a consumer has electricity for, say, 8 hours a day, they shift all their household tasks into that window. He explained that regardless of whether the power is on or off, the consumer typically ends up using the same total amount of electricity over the course of a week.

Furthermore, if a consumer fails to submit their meter readings during the last four days of the month, the distribution system operator estimates consumption based on historical average data. Should readings be submitted late, a recalculation will be made the following month. This means any discrepancies discovered can lead to an adjusted bill in the subsequent billing cycle.

“These factors influence the formation of electricity bills, irrespective of the situation with blackouts.” - Serhiy Kovalenko

In summary, the main reasons for unchanged electricity bills are the fixed tariff, deferred consumer demand, and untimely submission of meter readings.

This situation underscores the complexity of Ukraine's electricity pricing mechanism, where fixed tariffs remain the primary driver of consumer costs. Given the frequent outages, clear communication between consumers and suppliers is crucial, particularly regarding meter readings, to prevent billing inaccuracies. For many households, understanding these billing dynamics is essential for managing budgets during a period of economic strain.