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The regulator removed price restrictions on the electricity market

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The decision of the National Commission, which regulates energy and utilities, will take effect on June 30.

The National Energy and Utilities Regulatory Commission (NEURC) decided to cancel the price restrictions on electricity, the so-called price caps, established by Decree No. 332 of February 25, 2022, from June 30. Commission members voted for this decision at a meeting on May 31.

Thus, the regulator canceled the lower and upper price limits in the electricity market segment “for the next day” and the intraday market.

We are talking about the points that set marginal prices in the electricity market at the level of UAH 2,000 per MWh for minimum load hours and UAH 4,000 per MWh for peak hours.

Intraday market restrictions have also been canceled (102% of the market each day ahead).

When considering the issue, the chairman of the board Ukrainergo Vladimir Kudritsky noted that the current price caps do not give the company the opportunity to import electricity in case of a shortage in the summer months.

Earlier, the head of the Verkhovna Rada Committee on Energy, Housing and Communal Services, Andriy Gerus, said that the elimination of price restrictions in the electricity market will allow the infrastructure to be fixed faster and new generation to be built.

Recall that earlier NEURC stated that the current tariff for electricity for the population covers only 28% of the costs of its production, transportation and payment of taxes.

On May 30, the Cabinet of Ministers almost doubled electricity tariffs for the population, to UAH 2.64/kWh.

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Source: korrespondent

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