15.04.2025
Energy Club, the leading business community of energy companies in Ukraine, has sent an official appeal to Denys Maslov, the Head of the Verkhovna Rada of Ukraine Committee on Legal Policy. The appeal concerns a critical legal issue that has arisen from the interpretation by the Grand Chamber of the Supreme Court (GC SC) of a provision in the Law of Ukraine “On Public Procurement” regarding contract price changes.
The issue pertains to the GC SC resolution dated January 24, 2024, in Case No. 922/2321/22. According to the Court’s conclusion, the total increase in the price of goods under a procurement contract cannot cumulatively exceed 10% of the initial price, regardless of the number of and reasons for such changes throughout the entire term of the contract.
This interpretation, according to Energy Club members, creates significant risks for the stability of electricity supply, particularly for the public sector. Under conditions of martial law and significant price volatility in the energy market, suppliers are limited in their ability to adequately respond to objective increases in the cost of the resource, thereby jeopardizing the fulfillment of contractual obligations.
The problem became particularly acute after the member company “Euro Trade Energy” approached Energy Club requesting assistance in highlighting this issue. In response, on April 9, 2025, Energy Club held a closed online meeting for its members. During the meeting, market participants thoroughly discussed the implications of the GC SC Resolution, potential solutions to the problem, and formulated a common position.
Based on the outcomes of the discussion, a working group prepared a collective appeal, which was signed by the President of Energy Club, Andriy Kostrytsia, and the heads of several member companies of the club.
Energy Club requests the Committee on Legal Policy to provide an official clarification regarding the legislator’s intent when amending Article 41 of the Law “On Public Procurement.” Specifically, whether the 10% price increase limit was intended to apply even when there is documented evidence of market price growth.
The community hopes that the Committee’s clarification will help convey the legislator’s position to the Grand Chamber of the Supreme Court, which is currently considering another case (No. 920/19/24) with similar circumstances. This case was referred by the Commercial Cassation Court due to the existence of an “exclusive legal problem.” The goal is to foster unified and balanced case law that considers both the need to prevent abuses in procurement and the objective economic realities of the energy market.
Energy Club continues to advocate for the interests of energy market participants and promote the stable functioning of the industry in Ukraine.
