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Energy tariffs

Belarus to improve its tariff system for greater energy efficiency

2015-09-25 - Minsk, Belarus

INOGATE experts are helping the government of Belarus to improve the country’s electricity tariff system for greater energy efficiency. This will benefit both industrial and individual consumers of energy.

Belarus is at the beginning of its restructuring and reform of the electricity sector; this includes reform of tariff regulation. A major component of cost reduction includes replacing average tariffs with cost-reflective time-of-use tariffs. These tariffs, which encourage energy use in periods of less demand (most commonly during the night instead of in daytime) will provide an incentive to some consumers to switch their consumption to off-peak hours, thus reducing spikes in peak demand. The reduced peak demand will also reduce the cost of transmission and of the development of the distribution grid.

The Ministry of Energy of Belarus together with INOGATE experts will focus on developing a tariff system that will allow consumers to optimise their consumption in the long term: according to their electricity requirements (day/night).

Cross subsidization, the practice of charging higher prices to one group of consumers in order to subsidize another group, will need to be eliminated to achieve the needed improvement of the tariff system. One of the elements defined in “The Concept of the State Programme of the Development of the Belarussian Electricity System for the Period till 2020” is improvement of the tariff policy as applicable to both residential and industrial consumers. 

The planned construction of a new nuclear power plant (with a first unit in 2018 and the second in 2020) has the potential to reduce the average cost of energy supply as it can be operated with a high capacity factor all year round. This will optimise consumption and, together with cost-reflective time-of-use tariffs, will reduce energy costs for both industrial and individual consumers of energy.