A surcharge for generators in cafés: is it legal for establishments to add markups during blackouts?
Kyiv • UNN
Establishments may include generator costs in the price of goods. A separate charge for its operation on the receipt may raise questions from the tax authorities.
During power outages, some cafés and restaurants add a separate generator fee to their bills. At the same time, questions arise as to whether establishments have the right to charge such an additional fee and whether they can determine its amount independently. Economist and member of the Economic Discussion Club Ihor Harbaruk told a UNN journalist more about how pricing works under current market conditions.
Can cafés raise prices because of generator operation?
According to the expert, food service establishments can indeed set prices for their products independently. Owners take their own expenses into account, including those arising from the need to operate during power outages.
If something is not prohibited by law, then it is accordingly permitted by law. When you come to a restaurant or café, you are charged a certain price for a cup of coffee or a food item. If you do not agree with the price at which it is sold, you simply do not buy it. These are the laws of the market
He noted that entrepreneurs are not obliged to operate at a loss. Instead, using a generator increases an establishment’s expenses, so the owner may take them into account when setting the price of the products.
What is better for a business entity—the owner of that café—to go bankrupt, taking into account the amount of fixed expenses, or to continue operating, but under such conditions? These are absolutely normal things under ordinary market conditions. No one can force someone to trade or provide services at a loss
Is it legal to charge a separate generator fee?
At the same time, the economist drew attention to the difference between raising the price of products and charging separately for generator operation. In his opinion, an establishment may set a higher price for coffee or food, but listing an additional percentage specifically for the generator on the bill is a questionable practice.
There is the price of the product. They can simply set it at 100 hryvnias, while someone else will set it at 110 hryvnias. And that is absolutely normal. But itemizing generator services—they do not have such a calculation, and I think the tax authorities will have questions for them
The expert compared this situation to an additional service charge in restaurants. He noted that an establishment’s expenses should be taken into account when setting the cost of goods and services, rather than automatically being passed on to the customer through separate payments. At the same time, the final legal assessment of such a payment arrangement must be made with consideration of the relevant documents.
When you go to a restaurant and they write at the bottom that there is a 15% service charge. I’m sorry, but I didn’t order service. These are your internal expenses; they should be covered by the company’s own expenses. Therefore, in my view, this is definitely not legal
Ihor Harbaruk also emphasized the role of the state in supporting entrepreneurs during the energy crisis. In his opinion, separate assistance programs are needed for large, medium-sized, and small businesses, which would allow establishments to operate during power outages.