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Energy Club Appeals to the Prosecutor General Regarding Systemic Pressure on Electricity Suppliers

31.10.2025

Energy Club is initiating a collective appeal to the Office of the Prosecutor General of Ukraine, aiming to stop the practice of pressuring electricity suppliers and to resolve the systemic crisis threatening the market’s stability and the nation’s energy security.

Energy Club has circulated a letter among its members to gather signatures before sending it to the Prosecutor General’s Office. The appeal provides a detailed analysis of the situation where prosecution bodies are actively filing lawsuits and initiating criminal proceedings against suppliers. The reason cited is the conclusion of additional agreements with municipal and state-owned enterprises, where the price per 1 kWh exceeds the 10% barrier established by the Law “On Public Procurement.”

Energy Club emphasizes that this stance from the prosecutor’s office ignores the realities of how the electricity market functions, especially under the conditions of martial law.

The letter highlights that the suppliers’ actions are in full compliance with special legislation adopted during martial law. Specifically, it refers to CMU Resolution No. 1178, which was passed to ensure stability in the country and directly removed the 10% limit on price changes for such a critical commodity as electricity. However, in their lawsuits, the prosecution bodies systematically ignore this Resolution, adhering solely to the general provisions of the Law “On Public Procurement.” This creates a legal conflict and jeopardizes the uninterrupted supply of electricity to hospitals, schools, and critical infrastructure facilities.

The most telling finding is an analysis conducted by Energy Club experts based on Prozorro data. It revealed that the prosecution bodies themselves, acting as customers, regularly conclude additional agreements for electricity price increases that significantly exceed 10%.

For example, in 2024, price increases were recorded under contracts concluded by regional prosecutor’s offices:

  • Lviv Regional Prosecutor’s Office: +54.42%
  • Rivne Regional Prosecutor’s Office: +54.65%
  • Donetsk Regional Prosecutor’s Office: +40.56%
  • Zakarpattia Regional Prosecutor’s Office: +73.66%

“An obvious conflict arises: on one hand, the prosecution bodies as customers recognize the justification for the cost increase, and on the other hand, as plaintiffs, they assess similar actions by other market participants as a violation of the law,” the letter states.

The appeal argues that the price change is a necessary measure driven by objective market factors beyond the supplier’s control:

  • Market Volatility: The price of electricity is dynamic and can change hourly. Following the massive infrastructure attacks, such as on October 10, 2025, the price on the “day-ahead market” (DAM) increased by 16.7% in just one day. The price difference between September and October 2025 reached 43.50%.
  • Producer Prices: Prices from JSC “NAEK “Energoatom” on the Ukrainian Energy Exchange also show significant fluctuations. For instance, in 2024, monthly price growth reached 62%.
  • Tariff Increases: State-regulated tariffs for transmission (an increase of almost 30% for 2025) and distribution (an average increase of 36.7% in 2023) are constantly rising.
  • The Imbalance Problem: Suppliers incur significant losses due to the imbalance settlement system, especially under conditions of shelling and unpredictable outages.

Energy Club warns that if the pressure does not cease, suppliers will be forced to refuse participation in public procurement to avoid operating at a loss and facing criminal proceedings. This will lead to a massive transition of municipal and state consumers to the “Supplier of Last Resort” (SoLR), whose tariffs are significantly higher. Such a scenario would create a critical load on the SoLR system and result in billions in losses for the state budget.

Given the threat to Ukraine’s energy security, Energy Club requests the Prosecutor General to organize an official coordination meeting. It is proposed that representatives from the Office of the Prosecutor General, the Cabinet of Ministers of Ukraine, NEURC (National Energy and Utilities Regulatory Commission), the Ministry of Energy, JSC “NAEK “Energoatom”, PJSC “NPC “Ukrenergo”, and supplier representatives be invited to the discussion. The goal of the meeting is to develop a coordinated and legally sound approach that will ensure the stable functioning of the electricity market under martial law and stop the unreasonable pressure on business.

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