Ukraine Introduces Long-Term Power Contract Pricing Rules for Non-Residential Consumers
On 15 June 2026, the Cabinet of Ministers of Ukraine adopted Resolution No. 799, which introduced amendments to the Procedure for Conducting Electronic Auctions for the Sale of Electricity under Bilateral Contracts.
The Resolution establishes the legal framework for conducting special auctions of standard products under bilateral contracts with defined electricity supply periods – three months (quarterly products), six months (semi-annual products), and twelve months (annual products).
Investor takeaway:
- For consumers: Fixed prices and volumes, allowing for clear planning of expenses, investments, and production volumes.
For electricity producers: Predictable revenues, clear rules of the game, and reliable protection against price drops during periods of electricity surplus.
The Resolution also imposes an obligation on JSC «NNEGC Energoatom» and PJSC «Ukrhydroenergo» to sell electricity to auction winners at such special auctions in the following volumes:
- 2 % of the planned quarterly generation volume – through quarterly auctions
- 1 % of the planned semi-annual generation volume – through semi-annual auctions
- 1 % of the planned annual generation volume – through annual auctions
Overall, at the initial stage, 4% of the generation volumes of state-owned producers will be sold through the new mechanism.
The auctions will be conducted in the form of three-day special sessions. For quarterly products, trading will commence in the second week of the month preceding the delivery period; for semi-annual products, in the third week; and for annual products, in the fourth week of the respective month.
The Resolution also establishes a number of specific requirements for participation in such auctions. In particular:
- an auction shall be deemed not to have taken place if the number of participants is fewer than five
- the starting price may not exceed the weighted average day-ahead market price index for the corresponding period of the previous year (for annual products, for the preceding 12 months)
- buyers are required to pay security deposits to secure the performance of their obligations under the contracts
- the maximum amount of the security deposit is up to 5% of the value of the resource for quarterly products, up to 10% for semi-annual products, and up to 15% for annual products
- up to 50% of the security deposit may be secured by a bank guarantee in accordance with the auction regulations
Particular attention is given to the conditions for purchasing electricity as a result of such auctions. Buyers are required to enter into bilateral contracts at the price determined during the auction and to pay for the purchased volumes regardless of their actual electricity consumption, in accordance with the take-or-pay principle, on a prepayment basis.
In addition, suppliers that purchase electricity for subsequent resale are required to ensure the supply to consumers of at least 50% of the volume of electricity acquired through such auctions and are not permitted to resell the declared volumes to other consumers.
Resolution No. 799 introduces a mechanism for long-term auctions for the sale of electricity under bilateral contracts with delivery periods ranging from three months to one year. The primary objective of the amendments is to create conditions for more predictable pricing and the development of long-term contractual relations in the electricity market.
The new mechanism will primarily affect non-household consumers, electricity suppliers, traders, and state-owned electricity producers, who will gain the ability to plan the purchase and sale of electricity over a longer period. It is expected that the mechanism will help reduce the impact of price volatility in short-term market segments and enhance predictability for market participants.
For additional information, please contact Asters' Partner Yaroslav Petrov and Senior Associate Tetiana Piskun.
