DTEK Grids Distribution System Operators have started the transition to incentive tariff setting

Thermal power generation18 November 2020

The National Energy and Utilities Regulatory Commission (NEURC) approved tariffs for the electricity distribution for 2021 based on the incentive tariff setting methodology for DTEK Kyiv Grids, DTEK Donetsk Grids, DTEK Dnipro Grids, DTEK Odesa Grids, DTEK Kyiv Region Grids, DTEK High-Voltage Grids, which are part of the DTEK Grids operating holding.

On November 18, 2020, NEURC approved a draft decision on tariffs for the electricity distribution services in 2021 for DTEK Distribution System Operators: DTEK Kyiv Grids, DTEK Donetsk Grids, DTEK Dnipro Grids, DTEK Odesa Grids, DTEK Kyiv Region Grids, and DTEK High-Voltage Grids.

The company says that after the transition to incentive tariff setting, the total scope of planned investments in improving the quality of power supply will increase on average by 30% compared to 2020 for all DTEK Grids DSOs. Investments will be used to enhance the power supply quality as per the planned indicators that are determined by the NEURC: reduce power losses in power grids and reduce the SAIDI indicator (power outage time).

The introduction of automation and digitalization technologies is the key area of DTEK Grids DSOs’ focus. In the long term, they will allow transforming the current network infrastructure into a Smart Grid system that meets the needs of the modern economy.

Both upgrading the network infrastructure and introducing Smart Grid technologies are essential for high quality power supply; and increased investment in the development of modern digital service channels will improve their experience of interacting with the company.

DTEK believes that the introduction of incentive tariff setting is a positive signal for the Ukraine’s energy sector, and an important step in the transition to market-based mechanisms for regulating the industry.

“DTEK will always be standing up for the European choice made by Ukraine, a market-conscious, transparent and fair operating environment for all market players. We explicitly provide our expertise on key issues and initiate an open dialogue between all market participants,” says the PR of the company.

As part of the procedure, the companies have fulfilled all the legal requirements for the transition to incentive tariff setting. The companies are expecting the NEURC’s approval of the tariffs in December 2020.