The European Business Association (EBA) has officially urged the National Commission for State Regulation in Energy and Utilities (NEURC) to review maximum price caps in the electricity market and set them at an economically justified level. According to the business community, current price ceilings must allow for commercial imports and flexible generation when the power grid faces critical deficits.
The Core Problem and Risks to Imports
The main issue arises when Ukraine’s price limit falls below the real cost of electricity or its production. The EBA emphasizes that if market prices in neighboring European countries exceed Ukraine’s established ceiling, commercial imports become economically unfeasible. This creates severe risks during peak deficit hours when the country urgently relies on external supplies from Europe to maintain grid stability.
Impact on Flexible and Distributed Generation
Furthermore, rigid price caps directly undermine the economics of gas-piston, gas-turbine, and cogeneration units. This type of distributed generation can rapidly increase output during high-demand hours, but attracting private investments requires market conditions where operations remain profitable during deficit periods.
Expert Assessments and European Integration
Energy experts share these concerns. Previously, Andrian Prokip, head of energy programs at the Ukrainian Institute of the Future, noted that price caps should be raised by at least 25% across all market segments. Ultimately, approaches to price caps must gradually align with the European model to eliminate barriers to imports and future market coupling.
