Ukrainian electricity prices are on par with European ones

Domestic industry forced to compete on unequal terms

Ukrainian electricity prices on the day-ahead market are on par with European ones and are higher than the European average.

In particular, in November, according to the Market Operator, the weighted average price of electricity in Ukraine on the DAM was 6,830.49 UAH/MWh (€140/MWh at the average euro-hryvnia exchange rate for the period). It was almost a third higher than in neighboring Poland and 1.2 times higher than in Hungary. Last year, it was €109.5/MWh, while the EU average was €82/MWh.

European industrial companies are currently engaged in discussions about a proposed fixed electricity price of €50/MWh in Germany, set to apply for a three-year period starting in 2026. Negotiations with the European Commission are in the final stages. Other European countries (Italy, Czech Republic) argue that this will distort competition.

Ukrainian industry is already forced to operate on an uneven playing field with its European competitors. Amid ongoing Russian attacks on energy infrastructure, Ukraine has implemented power restriction schedules for industrial consumers and businesses, and since November 8, they have become round-the-clock.

Ukraine’s current energy supply challenges stem from damage to its power system caused by Russian attacks. In October-November 2025, the situation worsened significantly due to a series of large-scale, systematic strikes. As a result, the transmission system lacks sufficient capacity to deliver electricity from the west to the east of the country, which is why Ukraine did not fully utilize its available cross-border import capacity in November.

Industry associations are also actively opposing Ukrenergo’s tariff increases for electricity transmission and dispatch services for 2026. The regulator proposed to raise them from 686.23 to 785.39 UAH/MWh (+14%) and from 98.97 to 110.03 UAH/MWh (+11%), respectively. The proposed increase is unacceptable for industrial enterprises. In the context of war and the energy crisis, the additional financial burden creates serious risks of production cuts, according to a joint statement by Ukrmetprom, NADPU, and UkrFA.