Regulatory restrictions on the energy market artificially slow down imports, - Trofimets

15 January 2025, 16:20 | Economy
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Current regulatory restrictions on the electricity market hinder efficient import of electricity.

This was stated by Alexander Trofimets, vice-president for energy issues of the Ukrainian National Committee of the International Chamber of Commerce.

“In order to use such a mechanism as the import of electrical energy to its full potential, it is necessary that if you purchase this electrical energy abroad, you could sell it no cheaper than you purchase it, because otherwise no one will do this,” noted.

According to the expert, the main obstacle is the so-called price caps - price restrictions established by NEURC in the electricity market. These restrictions actually block the possibility of efficient import of electricity, especially for small consumers.

“In our electricity market there are restrictions on market segments such as the intraday market, the balancing market, the so-called price caps that are introduced by NEURC. They periodically review them and periodically raise them a little, but this is not a panacea,” explains Trofimets.

The expert notes the need to abolish price caps, arguing that the market itself is the best price regulator:.

" Supply and demand are also fuses.

And if there is some price for electrical energy that is unaffordable for the consumer, he simply will not buy it and will disconnect from the energy system at these moments."

Trofimets also drew attention to the paradoxical situation when, in times of electricity shortage, expensive emergency assistance is used instead of more economically profitable imports.

Earlier, DiXi Group expert Bogdan Serebrennikov said that the full use of import potential is hampered by internal regulatory mechanisms, in particular, price caps in the electricity market.

Based on materials: videostorage1.looqme.io



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