24.08.2026
The National Commission for State Regulation in the Spheres of Energy and Utilities has considered the Energy Club’s appeal regarding the introduction of temporary safeguards in the pricing mechanism on the balancing electricity market.
In its appeal dated June 1, 2026 No. 37/06/26, Energy Club raised the issue of the possibility of temporarily determining the cost of imbalances taking into account the price formed on the “day-ahead” market in order to reduce the impact of excessive price fluctuations during martial law.
In its response, the NEURC recalled that the legislation already gives the Regulator the right to set maximum prices on the DAM, intraday and balancing markets in the event of significant price fluctuations. At the same time, such restrictions should be justified, have minimal impact on the formation of a free market price, and be regularly reviewed.
In particular, the resolution of the National Commission for the Regulation of Energy and Power Generation of Ukraine No. 621 of April 23, 2026, from May 1, established maximum limit prices:
The regulator explained this by the need to balance the power system, minimize the number and duration of consumer outages, attract electricity imports, as well as the difficult situation on the European energy market, which affects the operation of gas generation.
The National Commission for the Regulation of Energy and Power Generation of Ukraine also drew attention to the amendments to the Law of Ukraine “On the Electricity Market”, which will enter into force on May 1, 2027. They provide that before the start of the operation of the single market coupling, the Regulator will be able to set maximum prices during an emergency situation in the Unified Energy System of Ukraine, but not for more than 90 days, unless a shorter period is determined.
In this case, prices on adjacent European spot markets must be taken into account, and the established restrictions must not impede the unhindered commercial import and export of electricity.
The response also emphasizes that the electricity market operates on a competitive basis, and all its participants, except for household and non-household consumers who purchase electricity under a supply contract, are responsible for their own imbalances.
Based on this, the NEURC concluded that the simultaneous application of the mechanism for their sale and purchase at a price determined by the in relation to the DAM price in the relevant settlement period, does not comply with the provisions of the Law of Ukraine “On the Electricity Market”.
Thus, the Regulator’s response shows that the mechanism for responding to significant price fluctuations provided for by the legislation remains the establishment of temporary limit prices. At the same time, the universal binding of the cost of imbalances to the DAM price may contradict the principles of individual responsibility of market participants and market pricing.
Energy Club will work out the arguments of the NEURC together with the Club’s member companies and market participants. Further professional discussion should be aimed at finding legally compatible and economically justified safeguards that will maintain responsibility for imbalances, but at the same time reduce the risks of excessive price fluctuations and systemic financial problems in the electricity market.
