EBA Demands Review of Electricity Price Caps Amid Peak Demand Fears

The European Business Association (EBA) has called on the National Commission for State Regulation of Energy and Public Utilities (NKREKP) to review electricity price caps in Ukraine's organized segments. The association emphasizes that new price caps must reflect the actual needs of the power grid ahead of the heating season.

According to the EBA's Energy Committee, the current approach hinders imports from Europe during peak demand hours, slows the development of new flexible generation capacity, and destabilizes the balancing market.

The association warns that artificial restrictions in Ukraine could create an artificial shortage, particularly on European markets where prices traditionally fluctuate depending on weather conditions, natural gas costs, and overall demand. Revising price caps is necessary to attract private investment in distributed generation facilities, such as gas piston and cogeneration plants, which can quickly cover shortages during peak hours.