NEURC starts reviewing electricity price caps: what will change?

The National Energy and Utilities Regulatory Commission (NEURC) has launched a procedure to revise the price caps for electricity for non-household consumers. The commission made the decision at today's meeting, UNN reports.

"As we said earlier, we will start the procedure of reviewing the price caps in order to respond promptly," said Yuriy Vlasenko, the Commission's chairman, during the discussion of this issue.

One of the justifications for this decision is the need to attract importers to the market who are not interested in doing so while price restrictions are in place.

In the draft decision proposed by the NEURC, the price caps are currently set at the current level, but the procedure launched by the Commission is likely to lead to a revision of the price ceiling.

Recall

In April, the NEURC was already planning to consider a decision to abolish the price caps on the electricity market, the so-called "price caps," on the day-ahead and intraday markets.

However, this proposal was later abandoned, and instead the regulator raised the price caps for electricity on the day-ahead and intraday markets on June 1. At that time, price caps were increased by 20% in the evening, and more than doubled at certain hours at night.

The current price caps are valid in the following time periods: from 00:00 to 07:00 - 5.6 thousand UAH/MWh, from 07:00 to 11:00 - 6.9 thousand UAH/MWh, from 17:00 to 23:00 - 9 thousand UAH/MWh, from 23:00 to 24:00 - 6.9 thousand UAH/MWh.

The minimum price ceiling is 10.00 UAH/MWh;

Price caps on the balancing market, as specified in the May resolution: from 00:00 to 07:00 - 6.6 thousand UAH/MWh; from 07:00 to 17:00 and from 23:00 to 24:00 - 8.25 thousand UAH/MWh, from 17:00 to 23:00 - 10 thousand UAH/MWh. The minimum price ceiling is 0.01 UAH/MWh.

The change in price caps does not affect the cost of electricity for households, but may lead to an increase in the cost for businesses.