EBA calls for preserving existing constraints financing mechanism in energy sector

The European Business Association (EBA) has appealed to Yuriy Vlasenko, Chairman of the National Energy and Utilities Regulatory Commission (NEURC), regarding the initiative of NPC Ukrenergo to introduce a redispatching mechanism with corresponding amendments to the Market Rules.

"At the end of December 2025, Ukrenergo held public consultations on this initiative and submitted their results to the NEURC. During the discussions, market participants drew attention to potential risks, including possible changes in approaches to pricing and financing the settlement of system constraints," the association said on its website on Wednesday.

As noted by the EBA, businesses expressed concern that the redispatching mechanism could lead to the shifting of system costs onto individual market participants. At the same time, companies that are members of the EBA's Energy Committee generally support tools aimed at increasing the reliability and controllability of Ukraine's integrated power system. However, they emphasize that such tools must be integrated into market rules and implemented without creating additional financial risks for producers, investors, and the sector as a whole.

"The Association points out that current legislation already clearly defines the source of coverage for the costs of settling system constraints. In accordance with the Law of Ukraine 'On the Electricity Market,' these costs must be included in the tariff for dispatching services," the EBA said.

According to business experts, shifting such costs onto individual producers due to changes in payment rules within the redispatching framework does not correspond to the established legislative logic, the Association noted.

The EBA calls on the NEURC to take into account the business position expressed during the public consultations and to preserve the existing approach to financing the settlement of system constraints through the relevant tariff, and to avoid decisions that could lead to the transfer of system-wide costs onto individual market participants.

The Association expressed hope for a balanced regulatory decision that will ensure the stable operation of Ukraine's power system and preserve legal certainty and predictability of the market model, the EBA said.