Ukrainians were informed of a possible increase in prices due to an increase in electricity tariffs: what will change in the price

The cost of electricity for industrial enterprises has increased for the first time to 15 hryvnias per kilowatt-hour, 85% above the previous level. Analysts note that this increase will inevitably affect consumer goods prices, so we should expect higher prices for familiar products in the near future.

The pricing process is quite simple. For example, if the cost of electricity has increased for a dairy, this will automatically affect the price of product delivery, since fuel costs have also increased. Electricity tariffs have also increased in stores, and all these costs are ultimately passed on to consumers in the price of goods on the shelves.

Stanislav Ignatiev, head of the Ukrainian Renewable Energy Association, explains that electricity prices are determined by demand and supply. The cost depends on the availability of electricity from nuclear, solar, and wind power plants.

According to him, the market situation is currently quite tense. Demand exceeds supply, driving up prices. Ignatiev also notes that there is no collusion or cartel agreement: the current price increase is due solely to high electricity demand.

As a result, even utilities such as Kyivvodokanal have been unable to meet their electricity needs, which in turn has affected the water supply in some areas of the capital. All of these factors ultimately affect the cost of basic products such as bread and milk.