19.08.2026
Energy Club has appealed to the Governor of the National Bank of Ukraine, Andriy Pyshnyi, on the need to develop price risk hedging instruments in Ukraine’s electricity market.
In its appeal, the Club emphasises that electricity market participants are increasingly voicing concern over the absence of effective price risk hedging instruments in Ukraine. This situation makes companies’ financial results excessively dependent on price fluctuations in the day-ahead market and complicates budget planning, the raising of financing, and the fulfilment of long-term contractual obligations.
Energy Club supports the initiative of Ukrainian Energy Exchange LLC to introduce a cash-settled futures contract on the DAM index.
In the view of market participants, such an instrument would allow companies to hedge price fluctuations for future periods, to establish a transparent forward price curve, and to bring the architecture of Ukraine’s energy market closer to the practice of organised markets in the European Union.
The appeal notes that the energy market companies represented in Energy Club confirm their practical interest in such an instrument and their readiness to take part in trading once it is launched.
At the same time, implementation of the project is being held back by the lack of certainty regarding clearing services for the contract by a central counterparty. The only institution in Ukraine holding a central counterparty licence is PJSC “Settlement Centre for Servicing Contracts on Financial Markets”, whose majority shareholder is the National Bank of Ukraine.
In this connection, Energy Club asks the National Bank of Ukraine to facilitate cooperation between the Ukrainian Energy Exchange and the Settlement Centre on organising clearing services for futures contracts on the DAM index.
In particular, the Club asks that consideration be given to including the development of the relevant derivative instrument in the Settlement Centre’s strategy.
“For the electricity market, hedging price risks is not a theoretical question but a practical instrument of stability. Companies must be given the opportunity to plan their operations, manage risks and conclude long-term contracts in a more predictable environment. Launching a futures contract on the DAM index could be an important step towards a more mature market infrastructure in Ukraine,” said Andriy Kostrytsia, President of Energy Club.
Energy Club believes that the development of price risk hedging instruments is a necessary condition for the further establishment of a competitive, transparent and financially resilient electricity market in Ukraine.
