Why electricity tariffs are rising: we pay for other people’s bad decisions

The current situation in Ukraine regarding renewable energy, which was previously considered an important step forward, has now turned into a serious financial problem. Instead of the expected economic benefits and energy independence, the country is faced with a paradox: more electricity is produced than the system can handle, and ordinary citizens have to pay for it.

This information was provided by Oleg Popenko, head of the Union of Consumers of Public Utilities. He noted that, despite the correctness of the concept of the transition to “green” energy, its implementation turned out to be unfounded and chaotic.

The main problem is the lack of balance. Around the world, the development of solar and wind power plants is usually accompanied by the creation of reserve capacities, such as gas or coal plants, which can quickly compensate for the shortage or excess of energy. In Ukraine, solar power plants were actively built, but the proper infrastructure was not provided.

As a result, on sunny days, a situation arises when excess electricity is produced, which has nowhere to go. The networks cannot handle such volumes, and part of the generated energy is lost. However, even if the energy is not used, the state is obliged to compensate investors for the costs.

According to the expert, in 2025, about 1.2 billion hryvnias were spent on compensation, these funds are ultimately paid by consumers.

This also explains the increase in electricity tariffs. The unprofitable increase in prices to 4.32 hryvnias per kilowatt became necessary to cover debts to producers of “green” energy that had accumulated over several years.

As a result, a situation has arisen where businesses receive guaranteed payments regardless of whether the generated electricity was used, and the main financial burden is borne by the population and entrepreneurs.

The expert also noted that there has been a significant increase in electricity transmission tariffs – more than twice, which further increases the cost of payments for consumers.

Let us recall that an increase in utility tariffs is inevitable, as well as the fact that Ukrainians may be charged debts for housing and communal services, which have approved new rules.

Additionally, consumers are faced with erroneous bills for electricity consumption, which also requires attention.