NERC started the regulatory procedure regarding revision of price caps since November

At its meeting on October 1, the National Commission for State Regulation of Energy and Utilities (NERC) made a decision to approve the draft resolution «On limit prices on the day-ahead market, intraday market and balancing market». This is stated in the message of the NERC.

In this way, the commission started the regulatory procedure for revising the limit prices for electricity in the relevant market segments from November of this year. In particular, it provides for open discussions, the date and time of which the regulator will additionally announce on its official resources.

«The revision of the limit prices on the electricity market is due to the need to ensure the conditions for the commercial import of electricity from European countries in order to cover a possible power deficit in the autumn-winter period during Russian terrorist attacks on the power system. The specified decision of the NERC is designed to balance the energy system and ensure stable electricity supply to all categories of consumers. It will in no way affect the fixed level of electricity prices for the population,» the regulator said in a statement.

The marginal prices for DAM and IDM in the time period from 11:00 to 17:00 are planned to be increased by 23% – to 6.9 thousand UAH/MWh from 5.6 thousand/MWh.

Price caps on these segments in other periods are proposed to be left unchanged, in accordance with the resolution of May 20 of this year (they came into effect on May 31).

• from 00:00 to 07:00 – 5.6 thousand UAH/MWh;
• from 07:00 to 11:00 – 6.9 thousand UAH/MWh;
• from 17:00 to 23:00 – UAH 9,000/MWh;
• from 23:00 to 24:00 – 6.9 thousand UAH/MWh;
• the minimum marginal price is UAH 10/MWh.

The regulator proposes to leave price caps on the balancing market at the level of the May resolution:

• from 00:00 to 07:00 – 6.6 thousand UAH/MWh;
• from 07:00 to 17:00 and from 23:00 to 24:00 – 8.25 thousand UAH/MWh;
• from 17:00 to 23:00 – UAH 10,000/MWh;
• the minimum marginal price is UAH 0.01/MWh.

As GMK Center reported earlier, the situation with energy supply and the size of the power deficit in the power system in the autumn-winter period of 2024-2025 depends on new missile attacks and possible damage to the energy infrastructure, weather and the dynamics of restoration of previously damaged energy facilities. Given the high risks of repeated shelling, no one can predict with high accuracy what the situation will be in winter.

In industry, the stability of energy supply will depend not only on the above factors, but also on the willingness of businesses to overpay for imported electricity and/or invest in their own generating capacity.