NEURC second hearing "On price caps on the day-ahead market, intraday market and balancing market"

November 01, 2023

On October 31, 2023, the Director of Energy and Infrastructure Programmes of Razumkov Centre V. Omelchenko took part in the second hearings at NEURC dedicated to price caps on electricity markets.

In his report, he noted that raising marginal prices in the morning and evening peak hours to UAH 6,900 and 7,500 per 1 MWh, respectively, will probably not be enough to cover the deficit in the winter period with imports. The reason is that electricity prices in the EU will rise significantly due to lower temperatures, reduction of generation by solar power plants, higher gas prices due to the shutdown of production at the Tamar field, and a 30% limitation of LNG supplies to Europe from Qatar for technological reasons.

  • Omelchenko suggested that the NEURC should revise the price caps taking into account the mentioned factors and instead of focusing on administrative levers of influence on the market, concentrate on regulatory measures aimed at eliminating the anti-competitive actions of some market participants, in particular, by introducing the REMIT rules.