The National Commission for State Regulation of Energy and Utilities (NKREKP) is considering a significant increase in minimum limit prices on the electricity market. They could reportedly increase by almost 100 times, and the decision could come into effect as early as the summer of 2025.
This is stated in a letter from the Federation of Employers of Ukraine to the National Commission for the Regulation of Energy and Utilities, which is available to UAprom.
The Federation of Employers of Ukraine has called on the National Commission for the Energy and Utilities of Ukraine to provide an explanation for the planned increase in price caps on the day-ahead and intraday markets from UAH 10/MWh to more than UAH 1,000/MWh. According to the Federation's estimates, such an increase will lead to annual financial losses for Ukrainian enterprises in the amount of more than UAH 6.2 billion.
The Federation noted that setting minimum prices for electricity is uncompetitive and that European countries do not use similar practices. This calls into question the initiative's compliance with European standards for regulating energy markets.
In addition, the Federation of Employers of Ukraine demanded the cancellation of the decision of the National Commission for the Regulation of the National Energy and Power Sector of Ukraine No. 2200 dated December 19, 2024, which establishes a new tariff for electricity transmission services of NPC Ukrenergo for 2025. According to this decision, the tariff will be increased by almost 30%. The Federation claims that such a decision is unfounded and non-transparent, which further complicates the financial situation of enterprises.
Closing of electricity trading and reducing market transparency
In the second half of 2024, restrictions were introduced in Ukraine on the publication of data on electricity trading. From December 30, 2024, citing martial law, JSC “Market Operator” stopped publishing information on trading on the “day-ahead” and intraday markets. “Ukrainian Energy Exchange” also closed free access to auction bulletins and weighted average price bulletins.
We will remind, on the eve of the dismissal of the former head of the company Volodymyr Kudrytskyi from Ukrenergo, several private companies were provided with state guarantees of financing. Among these firms were the enterprises of the family of the head of the Khmelnytskyi MSEK, Tetyana Krupa, and the former high-ranking official of the State Budget and State Budget Service, Oleksandr Vizir. While Krupa is already under suspicion and is in pre-trial detention, Vizir is still beyond the attention of the NABU.
