Expert Popenko explained how Ukrainians are imposed with the myth of 'loss-making' tariffs in order to raise prices.

Electricity tariffs: is an increase necessary?

Chairman of the Union of Consumers of Utility Services of Ukraine Oleg Popenko states that the current electricity tariffs for the population already account for all expenses of energy companies and do not require an increase. He emphasizes that the cost of electricity consists of various components that are fully included in the current tariff.

'Let's say right away that the current cost of electricity that we pay as a population fully covers all expenses. There are no grounds for raising electricity tariffs'

Risks of price increase

Popenko explained that the tariff includes costs for generation, services of 'Ukrenergo' and regional energy companies, and these expenses are fully compensated by consumers. However, he does not exclude the possibility of price increases in the future, warning about a potential increase in electricity prices by more than 70%.

'In fact, the market price today is about 9 UAH. Therefore, the requirements of the IMF and statements of our high officials about approaching market prices may mean that theoretically we could see soon, if not this year, then next year, that the cost of electricity will initially rise to 6.5-7 UAH, and then to 9 UAH'

The impact of politics on tariffs

The expert doubts the government's promises regarding the stability of tariffs, indicating that only political factors can restrain their increase. In his opinion, the government is unlikely to raise prices ahead of elections, as this may affect their results.

'The only, you know, such a marker for most Ukrainians may be that tariffs will not be raised if the issue of elections seriously comes up. Because no government will definitely raise tariffs before elections, because they will definitely lose those elections'

Popenko emphasizes the lack of economic grounds for increasing tariffs, but warns of potential risks of rising electricity prices in the future.