The reasons for protests of ferrosplavov no required upgrading of the enterprises, – Kuhar

Причин для протестов ферросплавщиков нет, необходима модернизация предприятий, - Кухар

The price of electricity for industrial enterprises will be lower than last year, rallies of employees of Ferroalloy enterprises do not have objective reasons, the protest activity will come to naught. This was stated by the lecturer of macroeconomics at the business school “MIM Kiev” Michael Kuhar

Write about this Ukrainian news.

“I think the experiences of the representatives of the Ferroalloy industry in vain. They just keep an eye on the situation on the market another month or two and see what to rally about. What the market situation is smooth and everyone is happy”- said M. Kuhar.

According to experts, the introduction of a competitive market of electricity in Ukraine is an important part of structural reforms. The reform represents an important milestone in the construction in Ukraine of an open competitive market environment, a key indicator of market reforms and compliance with international obligations. Kuchar also predicts reduction in the cost of electricity in the near future.

“Exchange trading of electricity is a welcome step, which should have been done, which we, fortunately, did. Was known in advance the intentions of the representatives of the Ferroalloy industry to stop the introduction of the market. But Ukraine has praised both the IMF and the European community for the fact that we have introduced another civilized fair market is at home. So I don’t think we’ll unfold ago. I believe that 2-3 months, and problems with the cost of electricity in Ukraine will not. It will be lower than last year” — says M. Kuhar.

Experts believe that a transparent market-based pricing of energy resources is the optimal stimulus for modernization and energy efficiency of Ukrainian industry, including Ferroalloy enterprises.

“The problem is that there was (before the reform of the electricity market – ed.) incentives for modernization, reduction of energy consumption. Because electricity rates were always quite low. Not any administrative methods to encourage the owners (companies – ed.) to modernize. This should be done by economic means” — the head of analytical Department of Concorde Capital Oleksandr Parashchiy.

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It is reported that since July 31 employees of “Zaporizhia Ferroalloy plant”, “Nikopol Ferroalloy plant” and “Dneproazot” (controlled by Igor Kolomoisky) hold meetings under buildings NKREKU and NEC “Ukrenergo”. The demands of protesters — to provide preferential electricity tariffs for these enterprises.

Recall, July 1, in Ukraine gained a new electricity market. Reform of the electricity market involves the introduction of the European model, which is aimed at promoting competition. Reform conducted in accordance with the obligations of Ukraine before the European Energoatom (implementation of provisions of the EU Third energy package). Reform of the electricity market – one of the conditions for granting Ukraine the second tranche of macro-financial assistance from EU in the amount of 500 million euros.