The All-Ukrainian Energy Assembly has appealed to the National Commission for State Regulation in Energy and Utilities with an initiative to revise existing price caps. Experts propose setting the maximum electricity price caps at 18,000 UAH/MWh to prevent resource shortages in the power grid.

The Essence of the Problem and Impact on the Balancing Market

Current price restrictions are already negatively affecting the operation of Ukraine's balancing market. In the first decade of September, the price of balancing electricity in a significant number of hourly intervals reached the maximum allowed 17,000 UAH/MWh. According to AEA specialists, rigid regulatory frameworks make it economically unfeasible to launch critical maneuvering capacities during peak loads and shortages.

Support for Distributed Generation and Imports

Experts are particularly concerned about the fate of gas-piston, gas-turbine, and cogeneration plants, whose cost price directly depends on gas prices. Low price caps not only block the operation of existing generation of this type but also significantly deter the emergence of new distributed capacities so needed by the country ahead of the winter period. In addition, artificial price containment directly threatens the volumes of emergency and commercial imports from Europe, because in conditions of deficit and higher prices on European markets, the resource simply will not flow into the Ukrainian energy system, as has already happened last winter, which was repeatedly stated by former Ukrenergo CEO Volodymyr Kudrytskyi.

Contradictory Data

It is worth noting the existing discrepancies between the position of the energy business and the regulator's decisions. Despite calls from the expert community to raise the bar to 18,000 UAH/MWh, on September 24, NEURC approved a draft resolution providing for more moderate price caps: on the day-ahead and intraday markets, the limit is proposed at 15,000 UAH/MWh, and on the balancing market — 17,000 UAH/MWh. The regulator motivates this by the need for a balance between consumer interests and market stimulation, but market participants insist on greater flexibility of price caps to guarantee energy security.