Expert: Electricity prices will go up without state regulation

The Ukrainian state is forced to regulate electricity prices even in market conditions. Otherwise, there is a threat that they go up uncontrollably.

This was stated in the comment for Kosatka.Media by energy expert Serhiy Dyachenko.

He recalled that according to changes in the law on the electricity market, price caps are set in the day-ahead and in the intra-day markets. They were set before, and now they were fixed by the law, Dyachenko specified.

“I once analyzed how the electricity markets work in the EU – there are no countries where the market is not regulated. This is not a market where things be let slide”, the expert said, answering the question how the EU will respond to price regulation in the electricity market in Ukraine.

This is a question of the “recklessness” of the Ukrainian energy reform, it could not be launched, Dyachenko believes.

He explained: in 2012, thermal power plants were privatized in Ukraine. They fell into almost one hand. The expert noted that at that time it was not clear how to introduce a market for bilateral contracts. Because, if to take three companies – Energoatom, DTEK and Ukrhydroenergo – they produce about 90% of the electricity. This is a monopoly market. And the reform had to start with the solution of this issue.

“And since we have a monopoly structure of production – if we let prices go, they will go up at the speed of a rocket. Therefore, one has to do such things (to regulate prices at the state level – ed.)”, concluded Dyachenko.

Recall, President Volodymyr Zelenskyy signed the Law "On Amending the Law of Ukraine “On the Electrictricity Market” No.330, which the Parliament adopted on December 4, 2019.

Tags: DTEK, tariffs, NNEGC "Energoatom", legislation, electricity, energy market, electricity market, Зеленский, Ukrhydroenergo, price

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