The balancing electricity market in Ukraine is on the brink of a systemic crisis, significantly affecting the stability of the energy system during wartime. As of early 2026, participants in this market owe the national energy company, NEC “Ukrenergo,” approximately 42 billion UAH.
Meanwhile, Ukrenergo itself has accrued debts exceeding 22 billion UAH to electricity producers. This trend reveals deep-rooted structural issues that have persisted for years without resolution.
The primary driver behind the mounting debts is attributed to systemic non-payments from certain consumer categories that cannot be disconnected from the power supply. Some of these consumers have shifted to the Supplier of Last Resort, which has effectively become the largest debtor in the balancing market. Consequently, Ukrenergo is compelled to extend credit to these consumers, relying on funds from generating companies.
Amid ongoing attacks on energy infrastructure, this situation poses a direct threat to the restoration and modernization of the energy system. The lack of funds hampers liquidity for companies, delays repairs, and restricts investments in flexible power capabilities and energy storage systems.
The Energy Association of Ukraine warns that the continued accumulation of debts in the balancing market presents a risk comparable to the physical destruction of energy infrastructure. They are calling for comprehensive measures to address the issue, including a review of the criteria for protected consumers and the implementation of mechanisms to prevent further debt growth.
Ukraine's energy market is grappling with a significant debt crisis, impacting its operational stability during wartime. The Energy Association is urging immediate reforms to address the underlying issues and prevent further financial deterioration.