EBA calls for preserving the current approach to financing system constraints in the energy sector

28/ 01/ 2026

The European Business Association has addressed Yurii Vlasenko, Chairman of the National Energy and Utilities Regulatory Commission (NEURC), in connection with an initiative by NPC Ukrenergo to introduce a pre-dispatch mechanism and amend the Market Rules. At the end of December 2025, Ukrenergo held public consultations on this initiative and submitted the results to NEURC. During the discussions, market participants drew attention to potential risks, in particular possible changes in pricing approaches and in the financing of system constraint management. Businesses expressed concern that the pre-dispatch mechanism could result in system-wide costs being shifted onto individual market participants. Member companies of the EBA Energy Committee generally support instruments aimed at improving the reliability and controllability of Ukraine’s integrated power system. At the same time, they stress that such instruments should be integrated into market rules and implemented without creating additional financial risks for producers, investors, or the sector as a whole. The Association notes that current legislation already clearly defines the source of financing for managing system constraints. In accordance with the Law of Ukraine “On the Electricity Market”, these costs are to be covered through the tariff for dispatching services. From the business community’s perspective, transferring such costs to individual producers through changes in payment rules under the pre-dispatch mechanism does not comply with the established legislative logic. Therefore, the European Business Association calls on NEURC to take into account the position of the business community expressed during the public consultations and to: preserve the current approach to financing the management of system constraints through the relevant tariff; avoid decisions that could lead to system-wide costs being shifted onto individual market participants. The Association hopes for a balanced regulatory decision that will ensure the stable operation of Ukraine’s energy system while maintaining legal certainty and predictability of the market model.

At the end of December 2025, Ukrenergo held public consultations on this initiative and submitted the results to NEURC. During the discussions, market participants drew attention to potential risks, in particular possible changes in pricing approaches and in the financing of system constraint management. Businesses expressed concern that the pre-dispatch mechanism could result in system-wide costs being shifted onto individual market participants.

Member companies of the EBA Energy Committee generally support instruments aimed at improving the reliability and controllability of Ukraine’s integrated power system. At the same time, they stress that such instruments should be integrated into market rules and implemented without creating additional financial risks for producers, investors, or the sector as a whole.

The Association notes that current legislation already clearly defines the source of financing for managing system constraints. In accordance with the Law of Ukraine “On the Electricity Market”, these costs are to be covered through the tariff for dispatching services. From the business community’s perspective, transferring such costs to individual producers through changes in payment rules under the pre-dispatch mechanism does not comply with the established legislative logic.

Therefore, the European Business Association calls on NEURC to take into account the position of the business community expressed during the public consultations and to:

preserve the current approach to financing the management of system constraints through the relevant tariff;
avoid decisions that could lead to system-wide costs being shifted onto individual market participants.

The Association hopes for a balanced regulatory decision that will ensure the stable operation of Ukraine’s energy system while maintaining legal certainty and predictability of the market model.