NEURC increases electricity price caps for businesses

According to the regulator, the increase in price caps will allow to increase imports at night

The National Energy and Utilities Regulatory Commission (NEURC) has raised price caps on the electricity market. The decision was made at a meeting on May 20, Liga.net reports.

The resolution comes into force on May 31, 2024.

According to the regulator’s decision, price caps will increase by 20% in the evening peak hours, and more than double at night.

The following maximum price caps were approved.

In the day-ahead market (DAM) and intraday market (IDM), the maximum price caps will be as follows:

• from 00.00 to 07.00, from 11.00 to 17.00 – 5.6 thousand UAH/MWh compared to 3 thousand UAH/MWh earlier.
• from 07.00 to 11.00 and from 23.00 to 24.00 – 6.9 thousand UAH/MWh. Before that, from 07.00 to 08.00 the price was 5.6 thousand UAH/MWh.
• from 17:00 to 23:00 – 9,000 UAH/MWh versus 7,500 UAH/MWh earlier.

The minimum price cap – UAH 10/MWh;

In the balancing market, the maximum price caps from 00.00 to 07.00 will increase from UAH 4 thousand/MWh to UAH 6.6 thousand. From 7.00 to 17.00 and from 23.00 to 24.00, the price will remain at UAH 8.25 thousand/MWh. From 17.00 to 23.00, it will be 10 thousand UAH/MWh against 8.25 thousand earlier.

The minimum price cap – UAH 0.01/MWh.

According to the regulator, the price cap increase will help stabilize the power system and increase imports at night.

Last November, the NEURC increased the maximum marginal prices for electricity on the DAM and IDM for the second time in a year.