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Ukraine must lift price caps on electricity and gas to integrate with EU market, - European Commission

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Ukraine should continue to gradually remove price caps on electricity in all market segments, as well as special obligations to provide public services (PSOs) in the gas sector.

This was reported by Censor.NET with reference to Interfax-Ukraine.

Increase in price caps

The European Commission recalled that in July 2025, the National Energy Regulatory Commission raised daily and intraday price caps by more than 60%, but the day-ahead, intraday, and balancing markets still operate under price restrictions.

"The removal of price caps and public service obligations should be accompanied by the creation of a financing mechanism for vulnerable consumers," the document states.

Tariffs for electricity transmission

The report also notes that current electricity transmission tariffs are insufficient for the investments and proper maintenance of the networks required for energy and climate reforms. The EC emphasized that gradual market liberalization and the abandonment of administrative intervention are prerequisites for the integration of the Ukrainian energy system into the European space.

Earlier, Volodymyr Omelchenko, director of energy programs at the Razumkov Center, noted that Ukraine's price cap system needs to be modernized and transitioned to the European model, where the market is regulated by competition rather than administrative decisions.