In July 2019, a new model of the electricity market should be launched in Ukraine. This is the introduction of transparent and competitive rules that are working in the EU. The reform of the electric power industry will change the system of pricing, supply and distribution of electric energy. This, in turn, will make the energy sector more attractive for investment and will provide opportunities for the development of the sector, including increasing the possibility of electricity exports to the EU.
Except for unequivocally positive consequences of reform, there would also be not too pleasant ones – the increase in the price of the electric power for end consumers. In particular, this will happen due to the abolition of subsidies given by industry, the introduction of stimulating tariff setting for the transmission of electricity, as well as competitive pricing in the production of electricity.
But the final choice is ours – whether to support reform and development or to maintain the unproductive status quo? What model will we choose – to be Venezuela in the middle of Europe or to be equal among the successful?
Andrian Prokip, the energy expert of the Ukrainian Institute for the Future
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