Low electricity prices threaten work of generation– expert

There should be a reasonable price balance in the electricity market so that neither consumers nor producers of electricity suffer. And imports from the Russian Federation and Belarus violated this balance.

Energy expert Dmytro Marunich told about this, commenting on changes in the law on the electricity market regarding the ban on electricity imports.

He explained that for domestic electricity producers such a ban is good. Because we are observing an ambiguous situation with a sharp drop in live quotations, which had a very negative impact on the situation with generation – some of the generating capacities are not working profitably.

The other side of the coin is consumer prices. Too low prices on the exchange are beneficial for individual consumers, but they do not create a reasonable balance, said Marunich. If manufacturers have drastically reduced revenue – it will be impossible to ensure further production.

“The amendments that were submitted by Mr. Gerus have opened up the market too much. They hit the domestic producer too hard. This does not mean that this manufacturer should be carried on hand – competition should be present on the market, but it should be fair. If we fully open our market, then here half of the generation will “bend”. That generation, which has a high cost of production”, the expert explained.

He added that in the new format of the market, prices should not have fallen so sharply. Affected by a number of factors that could not be foreseen. In particular, an atypically warm winter.

Tags: tariffs, legislation, electricity, electricity market, import

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