Ukraine's current electricity market model is crippling the wartime economy, artificially inflating prices by 600% and generating corrupt super-profits for state monopolies.
As reported by Hvylya, Oleh Popenko, head of the Consumers Union of Public Utilities, made the statement during an interview with political analyst Yuri Romanenko on his YouTube channel.
According to the expert, traditional market mechanisms fail to function under relentless shelling and generation deficits, serving instead to provoke skyrocketing prices.
"In October, electricity costs surged by 40% month-on-month, adding another 6% in November. That is a total increase of 46% compared to September. These are exorbitant prices that neither utility companies, water providers, nor district heating operators—whose rates have remained frozen for years—can afford to pay," Popenko emphasized.
He noted that these rising costs weigh heavily on production expenses for all Ukrainian goods, from bread to military equipment.
The Math Behind Super-Profits: 1.15 vs. 6.80 Hryvnia
Popenko presented calculations highlighting the massive gap between the actual cost of power generation and the price tag facing consumers.
"Energoatom's production cost, excluding VAT, is approximately 1.15 hryvnia per kilowatt. Meanwhile, the weighted average market price in November hit 6.80 hryvnia. We have a situation where a state-owned company is factoring in over 600% profit. This isn't a market; it is a 'corruption barrier' that every Ukrainian is paying for," the expert noted.
According to his data, even these colossal funds remain unused. Citing Andriy Gerus, head of the Verkhovna Rada Committee on Energy, Popenko noted that Energoatom has accumulated 60 billion hryvnia in its accounts simply because the company failed to spend it.
"Money is collected through inflated tariffs, ostensibly for development, but in reality, it sits as dead weight because the old corruption schemes broke down after the leadership change, and new ones haven't been built yet," the analyst remarked ironically.
The Solution: Freezing the Market Until War's End
Oleg Popenko proposes legislation to suspend the electricity market for the duration of martial law. He pointed out that a similar moratorium is already in place for heat and gas tariffs, under a law passed in August 2022.
"The state must set a fixed weighted average price that ensures Energoatom a reasonable profit margin—say, 30% rather than 600%. This would lower the price for business and industry to 4–4.50 hryvnia per kilowatt, down from the current level of nearly 7 hryvnia," Popenko said.
The expert is convinced that without returning to state tariff regulation during the war, Ukraine risks destroying its industrial potential and driving the utility sector into a debt trap.
Earlier reports detailed who is profiting from Ukrainians through electricity tariffs.
