#Balancing Market

Expert Oleksandr Kharchenko stated that multi-billion-dollar debts on the balancing electricity market cannot be solved by Ukrenergo alone — a comprehensive government mechanism is needed, including the repayment of state mine debts.

The growth of Ukrenergo's debts to balancing market participants deprives companies of operating funds and scares off investors, requiring a review of regulatory rules.

NPC Ukrenergo's debt to balancing market participants reached UAH 36.69 billion in the first nine months of 2026, an increase of 60%. The bulk of the debt is owed to balancing service providers.

Debt owed by balancing market participants to NPC Ukrenergo has exceeded UAH 45 billion, growing by UAH 1 billion per month in winter. The government has modified heat utility revenue allocation and introduced special accounts to curb debt growth.

Uncontrolled electricity consumption by enterprises without payment creates multi-billion debts in Ukraine's balancing market, demanding urgent state intervention.

Multi-billion debts on Ukraine's balancing market block investments in energy storage and flexible generation due to consumers protected from disconnections.

Experts link the accumulation of debt on Ukraine's balancing market to non-payments by water utilities and state mines. In their assessment, a tariff review will only slow the growth of debt, while legislative measures are needed for a solution.

Alexander Kharchenko, Director of the Center for Energy Studies, stated that the European side will not allow the merger of energy markets until Ukraine settles its debts on the balancing market. Without a concrete plan to reduce the debt, integration remains abstract.

The debt of balancing market participants to Ukrenergo has grown by 11 billion UAH since the beginning of 2025 and reached 46 billion UAH, while the operator's reverse debt is 32 billion UAH. Experts see a vicious cycle of non-payments.

UARE head Olga Evstigneeva called chronic debts in the electricity market an "invisible missile" that is destroying the industry economically, and stated that without a reform of PSOs and payment discipline, Ukraine's integration into the EU energy market is impossible.