Revision of price caps will make electricity imports cheaper than emergency assistance

November 02, 2023

The National Energy and Utilities Regulatory Commission (NEURC) should review price caps on the electricity market so that Ukraine can cover the electricity deficit with imports, said Razumkov Centre Energy Programmes Director Volodymyr Omelchenko.

"NEURC must somehow optimize the price caps in peak periods, from 5 PM to 10 PM, to make these import flows commercially interesting," he said.

Omelchenko elaborated that in winter, a situation may arise when the cost of electricity in Ukraine, even in the conditions of its deficit in the energy system, will be lower than in the European Union. Since imports will be commercially unprofitable, Ukraine will not be able to cover the deficit in the energy system.

According to his assessment, in winter the deficit in the system may reach 3 GW, and the bulk of this volume can be covered with imports.

He added that without imports, Ukraine will have to use emergency aid for the energy system.

"It is better to receive the expected volume of imports at lower prices than to take it urgently. Extraordinary flows, extraordinary aid, will cost much more," Omelchenko emphasized.

Earlier, the state-owned enterprise "Market Operator" notified that for full synchronization with the energy market of the European Union, price caps in Ukraine should be set on a par with the European.


Volodymyr Omelchenko

Director, Energy Programmes

Born in 1967 in Kyiv

Education: Kyiv Politechnic Institute, Department of Chemical Engineering (1992)

Author of over 50 scientific works and op-ed publications. Took part in development and implementation of international energy projects and scientific research in international energy policy


1992 – 1996 — worked in different positions in the mechanical engineering industry

1997 – 1998 — Head Expert of the Division of Oil, Gas and Petroleum Refining Industry of the Ministry of Economy of Ukraine

1998 – 2003 — Naftohaz Ukrayiny National Joint-Stock Company, in Charge of Oil Transportation Section

2004 – 2007 — Chief Consultant at the National Institute of International Security Problems of Ukraine’s NSDC

since February, 2007 — Leading Expert, Razumkov Centre. Director of Energy Programmes since 2013

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