Issues within Ukraine’s public electricity procurement system have led to significant delays, with some state and municipal buyers unable to secure suppliers for months due to ongoing tender processes.
Alexander Kudym, a representative from Euro Energy Trade, noted that despite efforts to obtain relevant data from Ukrenergo, the information was not readily provided. However, some details were eventually acquired following inquiries from civil organizations and journalists.
Kudym highlighted that the first quarter of the year poses a considerable burden on the last-resort supplier, as it is a transitional period. He reported that the number of consumers transitioning to last-resort supply has tripled from 2024 to 2025, according to official statistics.
Further analysis using SmartTender’s analytical tools revealed that many procurers struggled to find suppliers over several months. Kudym remarked on the alarming statistics showing that a significant number of buyers conducted procurements without securing a winner and failed to find a supplier in the following three months.
He emphasized that these occurrences illustrate the systemic issues that have developed in the electricity procurement market due to current practices. “The fact that you can spend three months conducting a procurement without any responses clearly illustrates the market’s problems,” Kudym stated.
Background on this issue dates back to 2021, when the market experienced a sudden and unpredictable price surge, coinciding with restrictions on price increases in public electricity procurement contracts. Specifically, a regulation allows for price adjustments of no more than 10% per unit.
Roman Zhuk, director of Gazenergo Trade, previously expressed concerns that such practices in public procurement pose systemic risks to the provision of services to state institutions. Additionally, Kudym noted that judicial and law enforcement practices in the electricity procurement sector are altering market behavior, further jeopardizing the stable supply to public institutions.
It is also worth mentioning that Ukraine’s energy market has accumulated debts amounting to approximately 200 billion UAH.
Ukraine's public electricity procurement system is facing significant challenges, with many state and municipal buyers unable to secure suppliers for months. The issues stem from regulatory constraints and market practices that have led to systemic risks for public institutions.