Energy Expert: Why Ukrainians Should Not Pay for Corruption in the Power Sector

Criticism of Ukraine's Energy Tariff Policy

According to ХВИЛЯ: Oleh Popenko, head of the Union of Utility Services Consumers, has criticized plans to fund Ukraine's energy sector recovery by raising household tariffs. He argues this approach has no global precedent. Popenko noted that following World War II, nations did not burden their citizens with infrastructure rebuilding costs, but instead sought funding through reparations and foreign aid, such as the U.S. Marshall Plan. In his view, Ukraine has chosen the opposite path. This critique comes as Ukraine's energy grid faces immense strain from ongoing conflict and targeted attacks.

Issues of Oversight and Corruption

Oleh Popenko emphasized the state's lack of control over where funds from major energy companies disappear. Corruption schemes in the sector continue to operate, with responsible individuals avoiding punishment. Regulatory bodies like the National Commission for State Regulation of Energy and Public Utilities (NEURC) and the Antimonopoly Committee fail to provide adequate oversight. State monopolies can reap profits of up to 700%, yet no agency conducts substantive audits. Furthermore, reformers from previous years face no political accountability for their actions.

Popenko stressed that Ukrainians have already been warned of potential summer blackouts, indicating severe problems within the energy system. He believes there is no global practice proving that infrastructure recovery can be financed through tariff hikes. According to him,

"this is physically impossible."

The expert also stated that

"no one has been held accountable for that corruption and that mess,"

underlining that this should entail not just managerial, but criminal liability. Oleh Popenko contends that authorities merely pretend to work, and no one wants to take the necessary measures.

Oleh Popenko's remarks highlight the complex situation in Ukrainian energy, where corruption schemes and a lack of proper oversight could exacerbate energy security issues. Raising tariffs for energy services without real changes in management and control structures may lead to social discontent. Amid potential blackouts and high tariffs, the question of effective resource management becomes even more urgent for Ukrainian society.