10.09.2025
Representatives of the Ukrainian Energy Exchange (UEEX) spoke at the emergency online meeting of the Energy Club, “Power Market Crisis,” presenting a detailed analysis of the current price crisis and proposing solutions using exchange-traded instruments.
In their presentation, UEEX experts compared the price dynamics on the bilateral contracts market (BCM) and the day-ahead market (DAM). The analysis showed that the bilateral contracts market is a significantly more stable and less volatile segment, which is naturally explained by different trading mechanisms.
Specifically, according to UEEX data for 2025:
It was emphasized that the daily prices of the DAM and the BCM are distinct and difficult to compare, as they are market segments with their own properties and risk parameters. Daily trading is a rapid reaction to market changes, whereas trading in long-term products is based on expectations and the information available at the time of the trade.
Drawing on the experience of Western markets, where the DAM is just one of many price indicators rather than the main pricing factor, UEEX sees a potential solution in introducing advanced exchange-traded products for risk hedging in Ukraine.
Among the proposed instruments are:
According to the exchange’s experts, hedging with such instruments would allow market participants to significantly reduce or completely avoid risks associated with unfavorable changes in spot prices in the future. This, in turn, would make companies’ operations more predictable and stable, ensure the fulfillment of concluded contracts, and reduce the motivation to terminate them.
UEEX noted that it is already developing the mechanisms to introduce these products, along with the necessary risk management tools.
