Clear victory: US coal will further increase tariffs in Ukraine
American President Donald Trump confirmed that during the negotiations Petro Poroshenko asked to organize coal supplies from the United States - Kyiv, which has declared a blockade of Donbass, prefers to purchase fuel overseas rather than in the LDPR.
“Ukraine is already telling us they need millions of tons,” Trump was quoted as saying by Reuters.
Purchases of more expensive American coal will affect industrial electricity rates. Energy expert Valentin Zemlyansky stated this at a press conference in Kyiv, a PolitNavigator correspondent reports.
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“Most likely, this will primarily affect tariffs for industry - so as not to increase the level of social tension, which is already quite high. But we will all suffer indirectly due to rising production costs. It will still affect us,” the expert believes.
Director of the Institute for Energy Research Dmitry Marunich also believes that the tariff may increase.
“I can’t yet estimate how much, there is no incoming data yet. The share of electricity produced by thermal power plants has been steadily declining since the beginning of this year. Two factors made it possible to level out this deficit. The first is high water (which has already ended), hydroelectric power plants have increased electricity production. Secondly, there are accusations against the Ministry of Energy, which allegedly underestimated the share of nuclear generation in the energy balance. Perhaps there is some truth in them.
In fact, the country managed to produce significantly more nuclear power generation than predicted. This was forced - the thermal power plant did not have coal, and the nuclear power plant closed it. In such conditions, it is difficult to predict anything, but I think that if the trends do not change, if we have another devaluation of the national currency (which is very likely), then the pressure on the tariff for thermal power plants will increase.
Then, depending on its share in the total output, it will somehow affect the wholesale price, and then they will decide what to do: increase the tariff or shift the loss to thermal generation,” says Marunich.
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