Energy Club Calls for Revision of Public Procurement Bill to Safeguard Energy Supplies for the Public Sector

18.03.2026

Energy Club has officially addressed Oleksii Movchan, Member of the Parliament of Ukraine, with proposals to improve Draft Law No. 11520 “On Public Procurement.” This document aims to update procurement rules and align them with European standards. However, the Club’s experts emphasize the urgent need to resolve legal conflicts that have already triggered a systemic crisis in electricity supply to the public sector.

In its appeal, Energy Club highlighted three key issues that the new law must finally resolve:

• The 10% Price Adjustment Limit: The first issue concerns the rigid 10% cap on price changes. This current stance of the Grand Chamber of the Supreme Court ignores the nature of electricity as an exchange-traded commodity with dynamic pricing. In previous years, market fluctuations reached dozens of percent. Under such conditions, fulfilling contracts at fixed prices becomes loss-making, yet adjusting prices is often treated as a legal violation.
• The Undermining of Resolution No. 1178: The second problem lies in the diminishing status of Government Resolution No. 1178 in judicial practice. Courts increasingly ignore specific wartime regulations, relying solely on basic statutory norms. This destroys the principle of legal certainty; suppliers cannot be confident in the legality of their actions even when following Cabinet of Ministers’ resolutions to the letter.
• Formula-Based Pricing Constraints: The third issue relates to applying the 10% limit to formulaic pricing. Law enforcement agencies are challenging numerous supplementary agreements, even though formula-based price revisions are based on pre-agreed algorithms and objective market indicators.

Energy Club is particularly concerned about retrospective liability for businesses. Currently, hundreds of lawsuits are based on the fact that suppliers’ actions, which were legal at the time, are now being classified as violations due to new judicial interpretations. The current version of Draft Law No. 11520 does not offer a solution to this problem.

To avoid legal chaos and the risk of disrupting electricity supplies to schools and hospitals, Energy Club has urged the MP to initiate a revision of the document. Specifically, experts request that the new provisions be brought into full alignment with current wartime regulations and that a mechanism be established to protect companies from retrospective liability.

Furthermore, Energy Club is initiating a joint working meeting involving the Parliamentary Committees on Economic Development and Energy, as well as representatives from the Ministry of Economy. The goal of this meeting is to develop balanced and transparent rules for adjusting energy prices in public procurement.