NEURC to continue discussing level of new electricity price caps at suggestion of its member Tarasiuk to increase them by 80% at peak
The National Energy and Utilities Regulatory Commission (NEURC) postponed to Tuesday morning the meeting announced for Monday, at which it was planned to increase the maximum price caps in the energy market by 35.7% from June 30.
The corresponding decision was made during the meeting at a suggestion of former head of the NEURC and member of the regulator Valeriy Tarasiuk, who spoke in favor of raising the price caps on the day-ahead (DAM) and intraday markets (IDM) during peak hours from 18:00 to 23:00 by 80% - up to UAH 7,200/MWh.
"We received feedback from manufacturers, the transmission system operator, the Energy Community Secretariat, and the market operator. These are the players who spoke in favor of the complete abolition of price caps. I personally also expressed this opinion. But, today, the majority of the commission does not agree with this approach. If we still set price caps, then I suggest increasing price caps by at least 40%, but for the sake of the possibility of imports, we also need to double the growth, that is, by 80%, to UAH 7,200/MWh from 18:00 to 23:00, during the so-called peak, scarce hours, when we definitely need imports," Tarasiuk suggested.
He also proposed to approve the level of the lower price cap of UAH 10/MWh.
"This is actually without a lower price cap. This will be a step towards consumers, since the average price will not increase that much, it will not stimulate imports during surplus hours, as it is happening now, and at the same time it will be an incentive for the development of energy storages, the transfer of consumption from peak to surplus hours," Tarasiuk explained.
At the same time, he stressed that the regulator would always be able to return to the revision of price caps if necessary.
Ruslan Kaidash, member of the regulator chairing the meeting, noted that the commission received requests from the Energy Community Secretariat, which, according to him, "has a more radical position on market regulation," as well as additionally from NPC Ukrenergo with certain proposals. Kaidash scheduled the meeting for 9:00 Tuesday.
