The Federation of Employers of the Fuel and Energy Complex of Ukraine (FRUTEC) has repeatedly appealed to the National Commission for State Regulation of Energy and Utilities (NERRECU) with a call to set maximum price caps on organized electricity market segments at no less than UAH 18,000/MWh. This was reported by RBC-Ukraine, citing a relevant statement by the federation. The appeal comes amid the ongoing heating season and regular attacks on energy infrastructure, which daily create the risk of new damage to generating facilities.
Thermal generation: a critical segment under pressure
FRUTEC emphasizes that thermal generation remains one of the hardest-hit segments of Ukraine's energy sector. At the same time, it is precisely thermal generation that covers peak loads, rapidly responds to capacity deficits, and compensates for the outage of other generating facilities damaged as a result of attacks. According to federation representatives, the speed of repairing damaged equipment directly depends on the availability of components, materials, and companies' financial ability to maintain necessary reserves. 'At a time when the energy system operates daily under the risk of new damage, regulatory decisions must ensure the maximum readiness of available generation,' the appeal states.
Gas piston and cogeneration units: growing role
The federation pays special attention to the growing role of gas piston, gas turbine, and cogeneration units, which are necessary to cover capacity deficits and quickly balance the energy system. The cost of production at these facilities is directly tied to the price of natural gas, and, according to FRUTEC, this factor must also be taken into account when determining ceiling prices on the market. Without an adequate price signal, the federation argues, operators of such plants will not be able to cover operating costs, let alone invest in the restoration and modernization of their fleet.
Context: price caps as a market signal tool
The issue of price cap levels in Ukraine's energy sector remains one of the most debatable. Earlier, ahead of the heating season, FRUTEC had already appealed to the regulator with a similar call. Commenting on the situation, experts pointed out that understated price limits can themselves generate an electricity shortage, even without taking into account external factors such as infrastructure attacks. At the same time, a number of observers note that raising price caps is inevitably transmitted to end-consumer prices and can exert additional pressure on the economy. Thus, the regulator faces the task of finding a balance between ensuring the financial stability of generation and limiting tariff growth for end users.
What's next
At the time of preparing this material, NERRECU had not published a response to FRUTEC's repeated appeal. A decision on the level of maximum price caps on organized electricity market segments is expected to be made within the regular regulatory cycle. For generating companies operating under constant risk of damage, the speed and scale of this decision can determine the pace of energy system restoration in the coming months of the heating period.
