Due to massive enemy attacks and a critical generation deficit, the Government has mandated that businesses and the public sector import electricity. This is the only way to avoid total blackouts. However, this path is legally blocked. A ruling by the Grand Chamber of the Supreme Court (Case No. 920/19/24) has created a precedent that effectively halts the public procurement market. The Court ruled that the price in a contract cannot increase by more than 10% over the entire term of the agreement. In wartime conditions, where the price of imported electricity from Europe can fluctuate drastically, this rule turns any contract into a “ticket” to the prosecutor’s office.
Immediate Consequences:
Suppliers are mass-terminating contracts with budget institutions to avoid losses and criminal cases.
Tenders on Prozorro are failing: no one wants to supply energy to hospitals and water utilities at a loss.
Critical infrastructure risks being left without power during the peak winter months.
Energy Club is holding an emergency online meeting with market participants, lawyers, and government representatives to discuss solutions to this legal conflict and to approve the text of an open letter to the President of Ukraine.
Topics for Discussion:
The Legal Trap: Analysis of Supreme Court Resolution No. 920/19/24—Why is it incompatible with energy market realities?
EU Experience vs. Ukrainian Reality: Why do indexation and exchange formulas work in the EU, while Ukraine relies on fixed limitations?
Supplier Risks: How to protect businesses from criminal prosecution for market-based pricing?
Action Plan: Implementing formula-based pricing and temporarily lifting the 10% limit for the duration of martial law.
Based on the results of the meeting, an official letter will be prepared and sent to the President of Ukraine and the Verkhovna Rada demanding urgent legislative changes to save the country’s energy supply.
Partner at FEDOTOV & PARTNERS Law Firm
Head of the NGO “Energy Union”
Managing Partner, Attorney at Law, ANTEVERIS Law Firm
Energy Law and Energy Market Attorney, PhD in Law
Vice President of Energy Club, former Deputy Minister of Energy of Ukraine