An expert explained how Ukrenergo’s rate hikes will hit Ukrainians’ wallets
26 May 17:06
The National Commission for State Regulation of Energy and Public Utilities plans to raise Ukrenergo’s electricity transmission tariff once again, effective July 1, 2026. This will be the third tariff increase this year. Oleg Popenko, an expert in housing, utilities, and energy, made this statement in a comment to "Komersant Ukrainian".
According to Popenko, Ukrenergo’s tariffs were raised on January 1 and April 1, and will now be increased by another 20% starting July 1. In other words, this is not a single increase, but three consecutive increases within a year. Ukrainians will not see any changes in their bills immediately starting July 1.
“Right now, there will be no impact on residents’ bills. But that doesn’t mean it won’t affect Ukrainians’ bills later,” he noted.
The expert explained that the electricity transmission tariff is one of the components in determining the market price of electricity.
“The increase in Ukrenergo’s transmission tariffs directly affects the formation of the market price of electricity,” Popenko emphasized.
He also stated that in the future, the government may gradually raise rates for the public.
“I received a letter from the Ministry of Economy stating that they plan to raise tariffs in 2026, 2027, and 2028 by 20% annually,” the expert said.
According to Popenko’s estimates, the current market price of electricity is already reaching 9–10 hryvnias per kWh, and at certain times has reached 15–18 hryvnias.
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Consequences for small businesses and industry
The expert also warned of the consequences for small businesses and industry.
According to him, the rise in tariffs has already affected the operations of restaurants and cafes.
“First and foremost, we saw a large number of small coffee shops closing in Kyiv. About 400 were closed in just the first three months (400 or 4,000—I may be mistaken here)—small restaurants and coffee shops that closed in Kyiv during the first quarter because they were directly affected by the cost of electricity. They cannot sell coffee at such prices because no one will buy it there for, say, 100, 150, or 200 hryvnias per cup. So we’re talking about small businesses that are not competitive,” Popenko noted.
According to Popenko, energy-intensive enterprises—water utilities, steel mills, and bakeries—as well as small businesses, particularly hair salons and small sole proprietorships, are likely to suffer the most.
“This will affect inflation, the cost of food, the cost of services, and even business rent,” the expert concluded.
As a reminder, the National Commission for Energy and Public Utilities Regulation (NEURC) is considering raisingUkrenergo’stariffs starting July 1, 2026.
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