DTEK Grids Distribution System Operators switch to incentive tariff setting starting January 1, 2021

Thermal power generation09 December 2020

The National Energy and Utilities Regulatory Commission (NEURC) has approved transition to incentive tariff setting methodology starting January 1, 2021 for DTEK Kyiv Grids, DTEK Donetsk Grids, DTEK Dnipro Grids, DTEK Odesa Grids, DTEK Kyiv Region Grids, and DTEK High-voltage Grids, which are part of DTEK Grids Operating Holding. Thus, the company is enabled to increase the size of investments into improvement of power supply in the city of Kyiv, Kyiv Region, Donetsk Region, Dnipro Region, and Odesa Region.

On December 9, 2020 the State Regulator (NEURC) adopted a decision on setting the tariffs for electricity distribution services in 2021 for DTEK Distribution System Operators, namely for DTEK Kyiv Grids, DTEK Donetsk Grids, DTEK Dnipro Grids, DTEK Odesa Grids, DTEK Kyiv Region Grids, and DTEK High-Voltage Grids.

Incentive tariff setting will increase the volume of planned investments in improving the quality of power supply by an average of 30% compared to 2020 for all DTEK Grids. A significant portion of the investment will be used to reduce electricity losses in the grid and improve the SAIDI (power outage time) indicator. NEURC defines these two indicators as key performance indicators for a distribution system operator.

The implementation of automation and digitalization technologies is one of the key focus areas for the operators of DTEK Grids distribution systems. In the long term, they will transform the current power grids infrastructure into a Smart Grid system that meets the needs of the modern economy. At the same time, the improvement could have been achieved more quickly if the incentive tariff setting was introduced according to the European model.

By developing the Smart Grid technologies and upgrading the power grids infrastructure, we will improve the quality and reliability of electricity supply to our customers. Moreover, we will enhance the quality of customer service using modern digital channels and services.

DTEK considers the introduction of incentive tariff setting as 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 stand up for the European choice made by Ukraine, a market-conscious, transparent and fair operating environment for all market players. We openly provide our expertise on key issues and are the initiator of an open dialogue between all market participants.