On June 8, 2023, the NEURC approved the draft resolution “On establishing price limits on the day-ahead market, intraday market and balancing market”, which proposes a 35% increase in the maximum price limit and the cancellation of the minimum price limit. Details.
The joint letter: Лист Асоціацій до НКРЕКП щодо прайс-кепів
In this regard, the EUEA, together with the UWEA, prepared a joint letter to the NEURC, in which they emphasized that the approval of the above mentioned draft decision would lead to negative consequences for the RES sector and the market as a whole, due to the following:
- The Guaranteed Buyer will not receive funds from the sale of electricity during the hours of maximum SPP generation and minimum consumption (daily summer hours) – the market will have a maximum offer with a minimum price due to the actual absence of a lower limit price. As a result, this will lead to a decrease in the commercial revenue of the Guaranteed Buyer and will have a negative impact on the level of payments with RES producers and will lead to an increase in the size of the RES development service fee paid to NPC Ukrenergo and an increase in the load on the tariff for electricity transmission services.
- The RES producers will have no incentive to leave the Guaranteed Buyer’s Balancing Group and sell electricity on the market.
Therefore, the two RES associations strongly advise to the NEURC the following approach:
- Abandon the establishment of maximum prices on the electricity market in order to further liberalize the electricity market and synchronize it with the markets of the European Union.
- In the case of a decision to establish limit prices, provide for a minimum limit price that will ensure the payments of the Guaranteed Buyer with RES producers under the “green” tariff at the expense of the proceeds from the sale of electricity by the Guaranteed Buyer at a level of at least 60% (as provided by the tariff cost structure for electricity transmission service for 2023), in particular, the lower limit price must be kept at the level that was in place as of May 30, 2023 or be higher.
