“Current price caps on the electricity market in Ukraine artificially lower prices and block commercial electricity imports from the EU even in periods of acute shortages. Because of this, the business is forced to overpay, turn on its own generators and spend two to three times more on electricity. Experts call for abandoning restrictions so that the market works efficiently and integrates with the European one. This was announced by Volodymyr Omelchenko, director”, — write on: ua.news
Current price caps on the electricity market in Ukraine artificially lower prices and block commercial electricity imports from the EU even in periods of acute shortages. Because of this, the business is forced to overpay, turn on its own generators and spend two to three times more on electricity. Experts call for abandoning restrictions so that the market works efficiently and integrates with the European one. Pwhat is it stated Volodymyr Omelchenko, director of energy programs at the Razumkov Center.
Volodymyr Omelchenko, director of the Razumkov Center’s energy programs, explains that the price restrictions introduced by the NCRECP distort market signals. “There is one more problem — the fact that we still have the so-called price caps introduced by the NCRECP — the “ceiling” of the price. And very often there is a situation where electricity is artificially cheaper in Ukraine, despite the huge deficit, than in the neighboring countries of the European Union,” said Omelchenko.
The expert emphasized that because of this difference in cost, the commercial import of electricity is actually blocked. “It prevents us from commercially buying this electricity in Europe when we really, really need it,” he added.
As a result, enterprises are forced to overpay, start their own generators and spend twice or three times more on electricity. “Then enterprises are forced to overpay, turn on generators and overpay two or three times for this electricity,” Omelchenko clarified.
The expert also critically assessed the lack of market integration with the EU: “I absolutely did not understand the position of NKREKP, which so far has not been able to implement market coupling so that our energy market operating conditions correspond to the conditions of the European Union, Europe in general,” said Omelchenko.
At the same time, the president of the DiXi Group analytical center, Olena Pavlenko, noted that Ukraine is facing a difficult choice: “Either keep the lower price, but risk resource shortages and emergency shutdowns, or raise price caps and ensure electricity imports from the EU.”
Director of the European-Ukrainian Energy Agency, Anastasia Vereshchynska, advises to completely abandon restrictions, as they are incompatible with market mechanisms. “Market mechanisms are incompatible with any type of price restraint,” she said. Experts are unanimous: the electricity market in Ukraine needs reforms and integration with the EU, otherwise problems with shortages and high costs for business will only grow.
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