Position of JSC "Market Operator" Regarding Public Procurement of Energy Resources

15.05.2025

JSC “Market Operator” has expressed its position regarding the critical situation that has arisen in the public procurement market for energy resources as a result of the interpretation by the Grand Chamber of the Supreme Court of the norm of the Law “On Public Procurement” concerning the 10% limitation on contract price changes (Resolution of January 24, 2024, in case No. 922/2321/22). This situation creates significant risks for the stability of energy resource supply, particularly for budgetary institutions, and does not take into account the volatility of energy markets under martial law.

In response to Energy Club’s letter No. 38/05/2025 of May 9, 2025, regarding participation in an open discussion on this issue, JSC “Market Operator” provided its developments concerning the determination of the price per unit of electrical energy as a commodity. These proposals were considered by the relevant working group of the Ministry of Economy.

Among the developments provided by JSC “Market Operator,” several options for determining the price of electrical energy for consumers within the framework of public procurement are presented:

• Fixed annual price: Applied when the supplier purchases electrical energy under a long-term bilateral contract for the billing year. To stimulate such procurements, a mechanism of a guarantee deposit from the supplier to the consumer is proposed, amounting to 5 days of the estimated cost of supply, which is returned if a long-term contract is concluded. If the contract is not concluded, the consumer has the right to terminate the contract and keep the guarantee deposit.
• Formula-based price determination: In this option, the price components (electrical energy purchase price and transmission tariff) are the same for all consumers, and the difference in prices between suppliers depends only on the cost of the supplier’s own services. The actual price is calculated using a formula that includes the purchase price on the “day-ahead” market, the transmission tariff, the cost of the supplier’s services, and VAT. The contract is concluded with the supplier who offers the lowest cost for their services in the Prozorro tender.
• Universal service price: It is proposed to grant other consumers (except small non-household ones) the right to purchase electrical energy from the universal service provider operating in the territory where the electricity is consumed, at the universal service price set for the respective billing month. The contract is concluded based on the results of tenders in Prozorro with the supplier who offers the lowest price for electrical energy, with the bidding starting from the universal service price.

These developments by JSC “Market Operator” will be discussed during the expert online discussion “Public procurement of energy resources: How the interpretation of the Law affects the market? Dialogue between government and business,” organized by Energy Club.

The event will take place online on May 16, 2025, from 14:00 to 15:00 in the format of the “Energy Freedom” talk show.

More details about the event and participants can be found at the link.

Публічні закупівлі енергоресурсів: Як тлумачення Закону впливає на ринок? Діалог влади та бізнесу.