Energy Club has received proposals from DNEPROENERGOZBUT LLC regarding the settlement of critical issues in electricity supply to budget-funded institutions.

22.01.2026

Energy Club has received proposals from DNEPROENERGOZBUT LLC regarding the settlement of critical issues in electricity supply to budget-funded institutions.

Energy Club member company DNEPROENERGOZBUT LLC has addressed the business community with an official letter outlining key legislative inconsistencies that threaten the stable energy supply of the public sector and critical infrastructure.

Based on its own experience, the supplier has identified three systemic problems requiring immediate resolution at the level of the President and the Verkhovna Rada:

1. Legal Uncertainty of Formula-Based Pricing. The Supreme Court decision (case No. 920/19/24) and NEURC Resolution No. 70 dated January 16, 2026, have caused a sharp increase in market prices, making the fulfillment of fixed-price contracts impossible. Suppliers are forced to switch to formula-based calculations using the “weighted average DAM (Day-Ahead Market) price” in accordance with the “Peculiarities” (Cabinet of Ministers Resolution No. 1178). However, the Law “On Public Procurement” (Art. 41) does not contain this concept, creating risks of ambiguous interpretation by courts and the potential invalidation of contracts.
2. Metering Issues for Group “A” and the Threat of Inspections. For Group “A” consumers (specifically water utilities), the price must be formed taking into account hourly schedules, as provided by the Methodological Recommendations of the Ministry of Economy. However, these recommendations do not have the force of law. This places water utilities outside the legal field and opens the way for inspections by the State Audit Service of Ukraine (SASU) and lawsuits by the prosecutor’s office, as neither Law No. 922 nor the “Peculiarities” operate with the concept of a price based on an hourly schedule.
   Although the NEURC has postponed the application of stimulating coefficients for budget-funded entities until 2027, the issue of installing smart meters needs to be resolved now to avoid a future collapse.
3. Risk of Early Contract Termination Due to Tariff Changes. Changes to transmission and distribution tariffs are expected on April 1, 2026. Current legislation (Law No. 922) does not explicitly allow for increasing the total contract value when regulated tariffs change while maintaining the same volume of kWh. This forces suppliers to reduce procurement volumes, which will lead to the premature exhaustion of contracts as early as September 2026.
   As a result, budget-funded institutions will be forced to switch to the “Supplier of Last Resort” (SoLR), whose tariff is 30% higher than the market rate, leading to significant overspending of budget funds.

Energy Club will include these proposals in a consolidated appeal to state authorities to protect the interests of market participants and consumers.