The rub will be higher household electricity bills. By ending Energorynok’s monopoly on buying and selling electricity on the wholesale market, the new system ends ‘cross-subsidization’ — where high industry rates kept household rates low. The Ukrainian Institute for the Future estimates household rates will increase by 28% this year and by another 84% in 2020. For industrial consumers, tariffs will increase by 45% this year, followed by a slight decrease of 5% in 2020. According to Eurostat, Ukraine has the lowest electricity prices in Europe. In the second half of 2018 – Ukrainians paid 4 euro cents the kilowatt hour, compared to 10 in Moldova, 13 in Romania, 14 in Poland, and an average of 21 across the EU-28.
The rub will be higher household electricity bills.
