Why the cancellation of price caps is scheduled for May 2027 and how the electricity market will operate
The Verkhovna Rada Committee on Energy and Housing and Communal Services explained what changes the EU integration law on the unification of Ukraine's and the European Union's energy markets No. 4834-IX entails for consumers.
The document provides for the cancellation of price caps — maximum electricity prices that apply in the wholesale market for businesses — from May 1, 2027. The Committee notes that the date was chosen deliberately, as May is a surplus month for the energy system. During this period, the heating season is ending, but the need for air conditioning remains low. Because of this, electricity consumption is low, while generation volumes, particularly solar and hydroelectric, remain significant. Therefore, sharp price spikes are not expected in May and June.
At the same time, the Committee acknowledges that certain risks remain in the market, primarily during the winter period. However, the law includes a mechanism to respond to emergency situations in the energy sector.
In particular, in the event of a sudden electricity shortage in Ukraine, the regulator — the National Commission for State Regulation of Energy and Utilities (NERC) — will have the right to reapply price caps to prevent abnormal price increases.
Another tool to protect against possible market abuses is the REMIT law, aimed at combating market power manipulations. According to its provisions, NERC can also respond to sharp fluctuations in electricity prices.
Subscribe to our Telegram channel t.me/sudua and to Google News SUD.UA, as well as to our VIBER and WhatsApp pages, and follow us on Facebook and Instagram to stay informed about the most important events.
