Expert on electricity tariffs: the government violates the law when setting prices

Expert on electricity tariffs: the government violates the law when setting prices

Oleg Popenko, head of the Consumers Union for Public Utilities, pointed out issues with electricity tariffs in Ukraine, noting that the government violates legislation when establishing them. During the years 2023-24, the government set a regulated price for electricity; however, the expert emphasizes that this decision contains serious management and financial violations.

According to Popenko, an additional financial flow of 50 billion hryvnias is formed in the energy market each year. He also pointed out the undistributed profit of 'Energoatom', which amounts to 61 billion hryvnias, while the company's planned profit this year is 32 billion hryvnias. The expert stresses that the only 'argument' from the authorities was that the price of electricity is lower than the so-called 'market' price.

Conclusions and problems in tariff formation

In the final report of the temporary investigative commission, approved three weeks ago, management and financial violations in state-owned energy companies are clearly stated. The conclusion is simple: tariffs in Ukraine are formed not by the economy, but by politics. These issues raise concern in society and among experts, underscoring the importance of transparency in utility price formation.

The National Anti-Corruption Bureau of Ukraine is also actively investigating this area. A recent operation 'Midas' has been conducted, where businessman Timur Mindich is named as the head of a criminal organization, who allegedly had influence over the former Minister of Energy Herman Halushchenko. These events further highlight the importance of adhering to legislation when forming tariffs for energy resources.

This situation with electricity tariffs in Ukraine reflects broader issues in the country's energy sector, where political decisions can significantly affect financial indicators and consumer welfare.

In the context of active anti-corruption investigations, such statements from experts may serve as a catalyst for changes in pricing policy, which, in turn, can increase the level of trust in state institutions and improve transparency in this field.