The EBA discussed the volume of imported electricity purchases

23/ 08/ 2024

Yesterday, representatives of the European Business Association met with the Ministry of Energy, Ukrenergo, and the National Energy and Utilities Regulatory Commission of Ukraine (NEURC) to discuss the issue of mandatory procurement volumes of imported electricity. Among the topics discussed were reducing the mandatory minimum import volume throughout the year from 80%, the possibility of purchasing electricity not on a daily basis but, for example, on a monthly basis in advance, the need for transformer modernization, the situation with emergency outages, and possible ways to minimize their negative impact on businesses. Business representatives emphasized that predictability is crucial for entrepreneurs. While businesses understand the reasons behind power disruptions, sudden regulatory changes without clear justification are not conducive to a favorable environment. In this context, there was particular concern about understanding the 80% calculation formula. Regarding the aforementioned issues, government representatives stated that it is possible to conclude a contract with a supplier for a month in advance, where an electricity pricing formula would be outlined. However, the general rule across the country is to conduct auctions on a daily basis. In the context of emergency outages, it was noted that, unfortunately, they cannot be predicted technologically. Nevertheless, Ukrenergo invited businesses to an offline meeting to discuss details and forecasts. It was agreed that the business community would prepare proposals and comments on the above-mentioned issues. We sincerely hope that these will be taken into account and that the dialogue will continue!

Among the topics discussed were reducing the mandatory minimum import volume throughout the year from 80%, the possibility of purchasing electricity not on a daily basis but, for example, on a monthly basis in advance, the need for transformer modernization, the situation with emergency outages, and possible ways to minimize their negative impact on businesses.

Business representatives emphasized that predictability is crucial for entrepreneurs. While businesses understand the reasons behind power disruptions, sudden regulatory changes without clear justification are not conducive to a favorable environment. In this context, there was particular concern about understanding the 80% calculation formula.

Regarding the aforementioned issues, government representatives stated that it is possible to conclude a contract with a supplier for a month in advance, where an electricity pricing formula would be outlined. However, the general rule across the country is to conduct auctions on a daily basis.

In the context of emergency outages, it was noted that, unfortunately, they cannot be predicted technologically. Nevertheless, Ukrenergo invited businesses to an offline meeting to discuss details and forecasts.

It was agreed that the business community would prepare proposals and comments on the above-mentioned issues. We sincerely hope that these will be taken into account and that the dialogue will continue!