The Ukrainian Federation of Employers in the Fuel and Energy Sector has urged the National Commission for State Regulation of Energy and Public Utilities (NERC) to maintain the current price caps on the electricity market until at least July 2026. This appeal highlights the critical role that price limits play in the operational viability of energy generation, particularly thermal power, which is essential for managing peak loads and ensuring system flexibility.
In its statement, the Federation emphasized that the price cap is a key factor for the economic sustainability of energy companies, especially those involved in thermal generation. It warned that reducing these price limits amid rising costs for fuel, logistics, and equipment repairs could render electricity production unprofitable.
This potential profitability crisis could further restrict the energy system’s ability to respond to power shortages. The Federation also noted ongoing damage to energy infrastructure due to Russian attacks, which necessitates significant investments for recovery and preparation for the heating season.
“Insufficient revenue due to low prices and Russian assaults severely limits energy companies’ capacity to undertake these necessary measures,” the Federation stated.
The appeal also pointed out that maintaining the existing price caps would foster a predictable investment environment for new generation capacity, including gas and cogeneration facilities, which are vital for compensating lost capacities and enhancing system flexibility.
In January 2026, NERC raised the price caps in short-term market segments, a move that analysts believe facilitated increased electricity imports from Europe during periods of deficit caused by damage to the energy infrastructure from Russian bombardments.
However, the regulator’s decision to raise price caps was described as temporary, with a mandate to revert to previous levels by March 31. Experts have previously warned that strict price limits could lead to an artificial energy deficit in the spring and restrict imports.
The Ukrainian Federation of Employers in the Fuel and Energy Sector has requested the maintenance of current electricity price caps until July 2026, citing concerns over operational viability and recovery from ongoing infrastructure damage. The appeal underscores the need for stable pricing to support investment in new energy generation capacity.