Attention!
Stimulatory tariff setting in Ukraine

Energy supplying companies planning to transfer to stimulatory tariff setting in the sphere of transfer and supply of electric power since 01.07.16, have an opportunity to provide materials for setting tariffs on power transfer and supply with the application of stimulatory regulation in accordance with the Procedure of tariff setting and/or power transfer by local power net works in case of stimulatory regulation appliance. In connection to this, National Committee that carries out state regulation in the spheres of power and utility supply, by the Decree at 25.02.16 № 235 introduced changes to the procedure of setting tariffs for license holders on power supply by the regulated tariff and/or transfer of electric power by local electric networks in case of applying stimulatory regulation, established by Decree NKREKP at 26.07.13 № 1030 with the aim of possible implementation of stimulatory regulation starting from the first calendar day of the quarter. The abovementioned decree of NKREKP at 25.02.16 № 235 “On approving changes to the procedure of set tariffs for license holders on power supply by the regulated tariff and/or transfer of electric power by local electric networks in case of applying stimulatory regulation” registered in the Ministry of Justice of Ukraine 01.04.16 at № 493/28623 and became valid from 05.04.16 from the day of its publication in the Official newsletter of Ukraine (№ 25, p. 1011). Note: The Agreement on Association between Ukraine on the one side, and the European Union, European Community on atomic power and their states members, on the other, and the Agreement on establishing the European Community in the part of Directive 2009/72/EC implementation and Government Program and the strategy of stable development “Ukraine – 2020”, the improvement of the current regulatory system for tariff setting in power supplying system, particularly transfer to the stimulatory tariff setting in the sphere of transfer and supply of electric power.

It was expected earlier that starting from January 1, 2016 stimulatory tariffs were to be acquired by “Dneproblenergo”, “Kievoblenergo”, “Lvovoblenergo”, “Vinnitsaoblenergo”, “Prikarpatieoblenergo” and “Kirovogradoblenergo”. However later this transfer for the new tariffs was proposed to be implemented by the Head of the Committee Dmitrii Vovk from April 1. Two more companies can be added to the list, explains to informagencies Ruslan Kaidash, head of the Department of Price and tariff Policy in the Sphere of Electric Energy System NKREKU. He said that transfer documents for stimulatory tariff setting were submitted by eight companies starting from April 1.

As explained by Kaidash, it was not possible to implement tariff setting from April 1, as for that time the Decree of NKREKU at 25.02.2016 № 235was not in action. It allows implementing stimulatory tariff setting for regional power department starting from the first day of the quarter.

As for the latter, the committee position has not changed since the presentation in autumn 2015: profitability for the old regulatory asset base is expected to be 5%, for the new one - 14,79%. We recall that previously the head of the committee Dmitrii Vovk reported that regional power distribution authority could have changed for the stimulatory tariff setting starting from April 1. However Ministry of Justice did not adjust the corresponding decree of NKREKU.

RAB – tariff setting/ regulation (stimulatory tariff setting), Regulatory Asset Base — regulated base of invested funds, presupposing profit growth due to the amount of investments.

Vovk suggested re-estimating the assets of regional power distribution authority when launching the reform of tariff setting. “We need to define the value of the applied assets. Moreover, many countries hold re-estimation annually”, - specified Head of NKREKU.

Besides, he said that the profit rates for the company are to reflect the capital value, and be equal both for the old and the new base, being up-dated on regular basis. The suggested profit rate for assets is 14,79%.

Sources:
© delo.ua at April 12, 2016, 14:56; uteka.ua at 13.04.2016