ENERGO-PRO told EWRC a minimum increase in electricity prices

In connection with speculative publications in the media related to the expected increase in the price of electricity for domestic customers from 01.07.2023, we would like to make the following clarifications:

At the end of March, the companies in the Energy sector submitted to the EWRC their proposals for new prices, which will take effect for the new price period from 01.07.2023. The price update is made annually based on the current situation in the sector according to the methodology approved by the Regulator, reflected in the companies' proposals. If the proposal of ENERGO-PRO had been made to date taking into account the current estimated market price on the exchange, the increase in the final sales prices for domestic customers of the company would be 0.31%. The final cost is formed by the tariff price, the transmission price for high and low voltage and the access price for high and low voltage.

Although the increase in transmission and access prices requested by the electricity distribution company in the proposal is higher than the increase requested by the electricity supply company, according to the formula applied it has a smaller percentage impact on the final price for customers. In this sense, at present, the proposal of ENERGO-PRO in the electricity price increase requested to the EWRC would be less than 1%, which represents a minimum adjustment. At the same time, it is important to note that at the time of the application submitted at the end of March, the estimated market price was significantly higher, which affected the values indicated therein. In order to make its final decision, the EWRC is expected to request an update of the data on the volumes of electricity delivered to final customers and the achieved prices for the purchase of electricity to cover the technological needs of the electricity distribution companies at the end of the price period. Only then will the Regulator be able to finally confirm the modification of the network tariffs requested by ENERGO-PRO.

Applications from energy companies — producers, ESOs, electricity distribution companies and final suppliers shall be submitted to the EWRC pursuant to Art. 41 of Ordinance No. 1 of 14 March 2017 on regulation of electricity prices. ENERGO-PRO strictly complies with the Calculation Methodology approved by the Regulator, its decisions and the entire regulatory procedure in relation to the annual update of prices in the sector. Given the described factors for the formation of electricity prices for the next price period, the analysis of applications without taking into account the market situation at the time of the decision of the EWRC at the end of June can be considered only speculative. The new electricity prices will be discussed at a closed meeting and announced by the Regulator on 01.07.2023.