The continuation of elevated price caps in Ukraine’s energy market until at least July 2026 is deemed essential for the stability of the energy system and the ongoing import of electricity. This assertion was made by a senior official who has urged the National Commission for State Regulation of Energy and Public Utilities (NERC) to amend its previous regulations.
The official proposed extending the current price caps, which are set at 15,000 UAH per MWh, for the day-ahead, intraday, and balancing market segments. He noted that these price limits have proven effective in creating economic incentives for electricity imports and stabilizing the system amid generation shortages following Russian attacks.
“The maximum price caps have created economic incentives for electricity imports,” the official stated.
He emphasized that the existing price caps foster a predictable and transparent pricing environment, aligning the Ukrainian market more closely with European regulations, particularly in light of future market coupling initiatives.
However, he cautioned that reverting to lower price limits could have detrimental effects, including:
- Limiting imports during peak periods;
- Worsening the financial health of energy generation companies;
- Undermining market incentives for investors.
Additionally, the official highlighted the risks posed to the energy system amid ongoing conflict. He argued that reduced price caps would effectively hinder the rapid mobilization of imports in case of shortages, posing a direct threat to energy security.
In January 2026, NERC raised the price caps for short-term market segments. Industry analysts noted that this decision expanded import capacity and increased electricity imports from Europe during periods of deficit, due to damage to energy infrastructure from Russian strikes.
It is important to note that the January decision by the regulator was intended as a temporary measure, and according to NERC’s regulations, the price caps are scheduled to revert to previous levels on March 31.
A senior Ukrainian official has called for the extension of elevated electricity price caps until July 2026, citing their role in stabilizing the energy system and facilitating imports. The proposal comes amid concerns that lower price limits could jeopardize energy security and financial stability in the sector.