The Government of Ukraine and the National Energy and Utilities Regulatory Commission (NEURC) set electricity prices for the public in violation of the law. Utility tariffs in 2023–2024 were approved without proper financial and economic justification.
This was stated by Oleh Popenko, founder of the public organization "Union of Consumers of Utility Services."
The expert stressed that authorities justified the regulated price only by claiming it was lower than the so-called market price. However, the very concept of a "market price" remains a subject of debate that the government meticulously avoids.
This approach resulted in an additional financial flow of approximately 50 billion hryvnias per year appearing in the energy market. These funds were generated at the expense of state-owned companies "Energoatom" and "Ukrhydroenergo."
Money Without Control
This huge flow of money effectively remained outside state control, Popenko pointed out.
"The money was redistributed among various market players—from producers to Mindich. The state failed to ensure control over this. The Verkhovna Rada Temporary Special Commission (TSC) on Energy Pricing recorded back in May that 'Energoatom' received 61 billion UAH in undistributed profit and plans to receive another 32 billion this year," he noted.
A total of 272 lawmakers voted for the TSC's interim report. However, both the government and law enforcement agencies completely ignored the document.
Three weeks ago, the Rada approved the commission's final report. It clearly points to management and financial violations in state-owned energy companies, including "Ukrenergo." It also documents the unsatisfactory work of the Cabinet of Ministers and the NEURC in regulating the market and setting tariffs.
The Scheme Is Not New
According to Popenko, this is not the first such case. A similar scheme was applied in 2016 when the "import parity" price for gas for the public was established. Court decisions confirmed the unlawfulness of the approach, but complaints filed with the NABU/SAP since 2019 remain stagnant.
"The conclusion is simple: tariffs in Ukraine are shaped not by economics, but by politics. And as long as the government and the regulator make decisions without transparent calculations, the market will remain a source of uncontrolled financial flows and abuses," Popenko emphasized.
