European Business Association Urges Ukrainian Energy Regulator to Maintain Current Redispatch Funding
European Business Association Issues Appeal
According to Главком: The European Business Association (EBA) has formally requested that Yuriy Vlasenko, head of Ukraine's National Commission for State Regulation of Energy and Utilities (NEURC), reject proposed changes to the funding mechanism for redispatch. The initiative for these changes originated from NPC Ukrenergo. The EBA stressed the critical need to preserve the existing tariff-based funding approach, warning that altering it could undermine the stability of Ukraine's energy market.
The Critical Role of Redispatch
Redispatch is a process where the system operator determines in advance which power plants will operate and at what capacity. Under Ukraine's 'Electricity Market Law', the costs for managing system constraints must be included in the tariff for dispatching services. This legal framework underscores why stable and predictable financing for this mechanism is so vital for market participants. Maintaining the current system is seen as essential for Ukraine's energy security, especially as the sector navigates ongoing challenges.
Recall that in late December 2025, Ukrenergo held public consultations on this initiative and subsequently submitted the findings to NEURC. The European Business Association emphasized that:
“the redispatch mechanism must not create additional financial risks for market participants.”
The Association expressed hope for a prudent regulatory decision that would not only ensure the stable operation of Ukraine's power system but also preserve legal certainty and the predictability of the market model.
Calls from the EBA highlight the importance of ongoing dialogue between regulators and the business community to ensure the effective functioning of the energy system. Any shift away from the established funding model could lead to suboptimal conditions for market players, which would, in turn, impact the country's overall energy security.
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