Electricity Price Surge for Legal Entities
Starting May 1, the National Commission for State Regulation of Energy and Public Utilities (NKREKP) has raised the cap on electricity prices for businesses to 15 hryvnias per kilowatt-hour across all hours of the day. This decision has sparked concern among industry analysts. Energy expert Oleh Popenko has labeled the move as driven by lobbying interests, linking it to a letter sent to NKREKP by Andriy Gerus, head of the parliamentary committee on energy.
Previously, the maximum electricity price stood at 9 hryvnias, with price caps divided into four periods based on grid load. In April, despite increased demand, no power outages due to shortages were recorded, and the country even exported electricity. The average selling price for businesses in April ranged between 9 and 9.5 hryvnias per kWh, but in May it could reach 15 hryvnias. At certain peak hours, costs may spike to 22–24 hryvnias, as was observed in January and February.
European Power Prices and Energy Infrastructure Challenges
For context, electricity prices in most European Union countries are near zero or even negative, occasionally dropping to minus 100–200 euros per megawatt-hour. In contrast, Ukrainian businesses now face paying around 300 euros per megawatt-hour.
Another pressing issue is the restoration of the Darnytska thermal power plant (TPP). Lawmaker Oleksii Kucherenko has warned that rebuilding the facility before winter is impossible. Currently, a bypass line from another TPP has been connected to the Darnytska network, allowing about 300 buildings to switch to a backup power source. The expert proposes considering the following:
- installing one boiler house for every 10–15 buildings;
- a realistic forecast of 20–30 buildings served by modular boiler houses by year-end;
- 10–20 boiler houses could cover the needs of 300–400 buildings.
Overall, the electricity market and energy sector in the country remain under significant strain, presenting numerous urgent challenges. The price hike risks undermining the business climate in Ukraine, especially amid global competition. At the same time, restoring energy infrastructure—particularly the Darnytska TPP—is critical for ensuring stable power supplies to households and commercial users during the winter months.
As businesses brace for the new electricity price hike, understanding the recent changes in price caps set by the energy regulator is crucial. This adjustment not only impacts operational costs but also highlights the broader context of energy pricing in Ukraine. For a detailed overview of the updated electricity price limits and their implications, check out the full article on the revised electricity price caps.