How to Calculate Electricity Bill in Ukraine

The government of Ukraine has stopped donating to utilities, which helped keep their rates artificially low. This caused a dramatic rise in electricity prices. The monopolists were able to hide their costs by providing consumers with an understated bill. The government’s donations to utilities were not sufficient to finance modernization of networks and acquisition of new equipment. It is difficult to get itemized calculation of every enterprise.

Ukraine was forced to end its energy subsidies on April 1, 2014. Ukraine’s precarious fiscal position made it impossible to continue the subsidy which was 7 percent of its GDP in 2015. To solve this problem, the government imposed steep increases in residential gas tariffs. This brought domestic prices in line to international prices. The majority of Ukrainian households use natural gas for hot and heating water, heating, cooking, as well as hot water.

The Ukrainian government is trying to increase energy production, which has been hit by the conflict. About half of the country’s electricity comes from coal, while the other quarter comes from nuclear power. In 2019, the government announced subsidies for fossil fuels. The coal industry is still in trouble. It is difficult to assess how much electricity Ukrainians consume, and many households are still struggling to pay their monthly bills. The government has made clear that it wants to diversify its energy sources, and decrease its dependence on coal.

The base price for electricity is EUR1.90/kilowatt-hour. This covers the six previous months. Transmission and distribution charges, VAT and other taxes are all additional costs. VAT and some other taxes are not recoverable by non-household consumers. The unit for electricity prices is the euro per kilowatt-hour. Moreover, the price includes non-recoverable taxes and levies.