In such conditions, the increase in the tariff for the transmission and dispatching of electricity, which is planned by NERCU, will increase the number of enterprises that will be forced to suspend work.

In addition, it will accelerate consumer and industrial inflation in Ukraine.

This was stated by the Head of the Secretariat of the Council of Entrepreneurs under the Cabinet of Ministers of Ukraine Andriy Zablovskyi.

"Tariff increases not only for electricity, but also for the services of other natural monopolies, are inappropriate in the conditions of turbulence that the economy of Ukraine is currently experiencing. Such an increase will especially hit enterprises that are energy-intensive - because they do not currently have enough energy to work due to blackouts and shutdowns. They are forced to idle or reduce production," Zablovsky emphasized. 

He emphasized: it is not appropriate to raise tariffs at the moment due to the fact that now is the most turbulent period of all.

So it would be advisable to move away from trying to raise anything at least for the winter period. 

"Now is a period of general uncertainty for business, and it is not advisable to prevent it from adapting to new working conditions. Especially since we have help from our international partners, including financial ones - under such conditions, reserves can be found so as not to take such steps now, and postpone this decision at least for the period of the war. This will help the business not just to survive, but also to preserve the economic, scientific and technological potential that they have in order to increase it after the war," Zablovsky emphasized.  

The expert noted that the increase in tariffs will contribute to a significant acceleration of industrial and consumer inflation, because electricity occupies a significant share in the cost of any product or service. 

"Now it is impossible to take such radical steps. Now the main task is not to interfere, but to give the business the opportunity to survive and adapt. We need a social contract, because everyone is in the same boat and should hear each other," he summarized. 

As you know, the NCRECP has agreed to increase electricity transmission tariffs by +30% and dispatching tariffs by 116% in 2023.

Business associations opposed this decision, because it will contribute to the laundering of more than UAH 22 billion of funds of Ukrainians and businesses, which are currently needed to support families, continue the work of enterprises, and help the Armed Forces. 

Economist Andrii Novak, in turn, said that raising tariffs is a wrong step that will hit consumers, provoke an increase in inflation and have a long-term negative effect on the entire economy of Ukraine.

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