Electricity price caps for Ukrainian businesses to increase from 30 June
Ukraine’s national energy and utilities regulatory commission, NKREKP, decided on Tuesday to raise price caps on the electricity market starting from 30 June.
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The draft decision considered by the commission provides for setting new price caps for the day-ahead market and the intraday market at the following levels:
- Upper level
- From 23:00 to 07:00 – 3000 UAH/MWh
- From 07:00 to 19:00 – 5600 UAH/MWh
- From 19:00 to 23:00 – 7200 UAH/MWh
- Lower level
- During the day – 10 UAH/MWh
For the balancing market, the maximum price cap will be 125 percent of the day-ahead market price, and the minimum price cap will be UAH 0.01 per MWh.
Since Russia’s full-scale invasion in February 2022, the price caps for electricity have been set at UAH 2,000 and UAH 4,000 per MWh for the hours of minimum (23:00 to 07:00) and maximum (07:00 to 23:00) load.
This means that, starting from 30 June, they will increase by 40 to 80 percent depending on the time of day.
Businesses fear that the increase in price caps will automatically lead to an increase in their electricity costs.
On the contrary, Ukrenergo and the energy ministry lobbied for the complete abolition of price caps altogether, fearing that the caps on the domestic market will prevent importing electricity from Europe in times of shortage.
In such circumstances, the regulator views its decision as a compromise.
On 30 May, the government almost doubled electricity tariffs for households to UAH 2.64/kWh.