Debts in the balancing electricity market threaten the stable operation of the entire energy system.

This is stated in the report of the Florence school of regulation (FSR).

" Significant debts between market participants, especially electricity producers, create a domino effect in settlements and threaten the stability of the entire energy system,” it says.

It is noted that the critical situation with debt on the balancing market is associated with the imperfection of debt collection mechanisms and the lack of effective financial guarantees from market participants. This negatively affects the liquidity of the entire energy sector and its investment attractiveness.

The report explains that to support market reforms, the Energy Community introduced the Ukraine Energy Observatory. The Observatory closely monitors all developments related to the energy market and corporate governance, providing assessments and recommendations.

“However, the depth of the problems indicates the need for broader and more systemic support to overcome the crisis that has arisen in the energy sector,” FSR emphasized.

Let us recall that earlier the director of the Center for Energy Research, Alexander Kharchenko, stated that as a result of huge debts in the energy sector, the development of new energy projects is blocked, and potential investors are freezing existing ones.