#Balancing Market

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.