Date: 3 months ago   Category: Economy

The formula Rotterdam will be cancelled. What will change for Ukrainians?

The national commission regulating tariffs in the sphere of power and utilities (NKREKP) has declared determination to abolish a formula "Rotterdam". This statement has caused triumph in network though not everyone understands what it in general there is a speech about. EtCetera has understood what is Rotterdam why it is cancelled and what it will turn back for Ukrainians.

WHY ROTTERDAM? Rotterdam is a formula of coal price which is used by thermal power plants for electricity generation. NKREKP has approved her in 2016 - that creation of reserves of coal didn't depend on a situation in a zone of conducting ATO.

the Coal price which power plants put in the final price of the electric power, is defined by the fact that coal is bought in Rotterdam at the exchange, then is delivered to the ports of Ukraine, and already from there by rail goes to thermal power plant.

B THAN PROBLEM? In practice the state has continued to buy coal in occupied territories, at the same time using the same formula with Rotterdam. At the same time nobody especially thought of a question of energy security of the country. According to opponents, the formula became one more tool in corruption schemes.

WHAT WILL be? Generally cancellation of a formula "Rotterdam" has been planned according to the existing Ukrainian legislation for a long time. With cancellation of a formula, consider in the government, the prices of light will approach market.

Unfortunately, becomes cheaper than nothing in our country, and in this case it isn't necessary to hope for reduction of tariffs too. Despite assurances that cancellation of Rotterdam won't strike purses of Ukrainians, experts already give unfavourable forecasts.

WILL be MORE EXPENSIVE? The Institute of energy strategies has counted that tariffs for consumers will grow at least three times. In turn the head of NKREKP Oksana Krivenko has already said that with cancellation of Rotterdam tariffs for light can increase approximately twice. She has reminded that now the tariff for the population makes for the first 100 kWh - 0,9 hryvnias, for everyone the subsequent - 1,68 hryvnias while economically reasonable tariff makes 1,85 hryvnias for KWh. To this figure it is also planned "to adjust" future tariffs.

OR is CHEAPER? However in the Ministry of Energy promise that the price for the population won't rise. In particular, such opinion was voiced by the Secretary of State of department Maxim Nemchinov. According to him even if any rise in price will also be, then in the payment order it won't significantly affect total amount.

Anyway, "About the market of the electric power" will earn the law of Ukraine only since July 1, 2019, and some provisions will take root still later. By then the country will be already in a fever from the forthcoming political changes, and elections can make the correction to a further course of Ukraine including power.



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