Expert explained changes in electricity tariffs: the devil is in the details.

The energy market regulator proposes to raise price caps in the electricity market

The energy market regulator of Ukraine has developed a draft decree that provides for an increase in price caps in certain segments of the electricity market. This was reported by Andrian Prokip, an expert in the field of Ukrainian energy, on his Facebook page.

"The regulator proposes to raise the price caps by 23% - from 5,600 to 6,900 UAH per MWh in the period from 11 to 17 hours," Prokip said.

However, the expert believes that during these hours the real market price is often lower than the proposed price caps.

Prokip provides examples when the market price for electricity significantly differed from the price caps. For example, on September 3 it was 5,200 UAH per MWh, and on September 13 it dropped to 855 UAH. There are even hours when the market price is only 100 UAH, such as on September 18 from 12 to 15 hours.

Prokip emphasizes that electricity imports are mainly needed during the evening peak hours when prices are higher. Therefore, changing the price caps during the daytime raises doubts about its feasibility.

It is worth noting that the practice of setting price caps that are lower than market prices, without crises in the market, does not comply with European standards and does not gain the approval of the energy community.