Belarusian nuclear station to reduce electricity prices

The commissioning of the Belarusian nuclear power plant will allow slowing down the increase in electricity prices against the background of existing dynamics of prices for external energy resources. The statement was made by Belarusian Deputy Energy Minister Mikhail Mikhadyuk at the online conference hosted by the BelTA website on 23 October.

Nuclear power plants are the source of the cheapest electricity all over the world. According to preliminary estimates, the Belarusian nuclear power plant will generate about 27-30% of the electricity Belarus consumes.

Mikhail Mikhadyuk added that the Energy Ministry and the Economy Ministry are busy trying to improve tariff policies in Belarus. The matter has been repeatedly discussed by the government. Apart from that, the Energy Ministry is preparing several regulations on the matter.

“Cross-subsidizing is a sore point now. The real sector of the economy has to cover that part of the costs involved in generating electricity and heat energy that the population does not fully pay for,” said the Deputy Energy Minister. The strategy to stop cross-subsidizing is stipulated by the program to guide Belarus’ social and economic development in 2011-2015. In line with the program Belarusian households are supposed to cover 60% of the cost by late 2015.

“By 2015 Belarusians are also expected to cover 100% of the economically justified cost of the electricity and natural gas used to cook food. It will be one of the incentives to save fuel and energy resources. People don’t try to save resources if the resources are cheap,” noted the official.

Once cross-subsidizing is removed, the burden on the real sector will be reduced, thus enhancing the competitive ability of Belarusian products. “However, the current efforts to reduce the tariff burden have to keep in mind real revenues of Belarusians,” stressed Mikhail Mikhadyuk.