15.05.2026
During the professional discussion of Energy Club “Public Procurement of Electricity: Legal Certainty, Retrospective Risks, and Energy Security”, market participants, government representatives, and the expert community discussed one of the most acute problems of the energy sector — legal uncertainty in the field of electricity procurement.
The forum was organized by the Energy Club business community.
The focus was on the risks of retrospective review of contracts, the application of formula pricing, judicial practice regarding exchange-traded commodities, as well as the consequences of mass appeals of supplementary agreements for competition and the state’s energy security.
Yevhen Yakubovsky, Director of the State Institution Profesiyini Zakupivli — a centralized procurement organization providing procurement, particularly of electricity, for over 140 state customers, including central executive bodies, customs, and tax authorities, cited specific indicators proving the deterioration of the market situation.
According to his data, in 2025, the average competition in Prozorro Market during electricity procurement amounted to 7.7 participants, while in 2026, it dropped to 4.3. A similar trend is observed in open tenders.
“Even in our procurements over the last six months, we have been observing a clear dynamic and trend of deteriorating competition and increasing margins,” noted Yevhen Yakubovsky.
While previously the aggregated procurements of the CPO ensured high competition and near-zero or even negative margins, now the indicators have changed significantly. The success rate of procurements has also decreased — more and more procedures fail to take place on the first attempt.
In parallel, suppliers’ margins are growing. While in 2025 the average margin in Prozorro Market was about 14 kopecks, in 2026 it is already around 30 kopecks without VAT to the Day-Ahead Market (DAM). In the procurements of the CPO itself, this indicator also increased — from 1.8 kopecks to 24.5 kopecks.
“The annual amount of electricity procurement by all state customers in Ukraine represents tens of billions of hryvnias. It is clear what potential losses the state incurs precisely because procurement efficiency is falling,” emphasized the Director of State Institution Profesiyini Zakupivli.
Separately, Yevhen Yakubovsky emphasized that electricity is an exchange-traded commodity, and therefore its procurement requires a different approach than the procurement of ordinary goods. In his conviction, formula pricing must become a mandatory mechanism for all state customers.
“Electricity is a fairly standardized commodity among all goods purchased in the Prozorro system. Accordingly, the approach to its procurement can be maximally standardized — precisely using a formula,” he highlighted.
According to Yakubovsky, today there is already a methodology of the Ministry of Economy regarding the determination of the price formula, and the mechanism itself can be technically implemented through an electronic contract in the Prozorro system.
“We have an excellent indicative. One can view the Ukrainian electricity market differently, but from a buyer’s perspective, electricity is precisely the commodity where how the price is formed can be clearly and understandably determined,” noted the speaker.
At the same time, he emphasized that the exchange-traded nature of electricity does not allow applying strict static constraints to it.
“The market must change without any restrictions. And this is correct — it is the nature of exchange-traded commodities. No one can say exactly by what percentage the exchange should grow,” said Yevhen Yakubovsky.
He also drew attention to the fact that a significant part of abuses on the market is related specifically to the margin, and the implementation of a single electronic contract and mandatory formula pricing could ensure predictability and equal interpretation of rules for all market participants.
“This can significantly improve the situation, ensure predictability, stability, and understanding for both business and state customers regarding how they purchase and what rules apply to everyone,” he summarized.
The key conclusion of the discussion was the need to form a unified and predictable approach to electricity procurement, which will take into account the specifics of the exchange market, will not destroy the economics of contracts, and at the same time guarantee transparency and protection of state interests.
