Ukraine Moves Toward Dynamic Electricity Pricing for Smart-Meter Users

Ukraine's National Energy and Utilities Regulatory Commission (NEURC) recently approved proposed amendments that would introduce dynamic electricity pricing for consumers with smart meters, according to a September 15, 2023 report. Dynamic pricing would adjust based on market fluctuations in Ukraine's day-ahead and intraday wholesale markets.

This could enable consumers to manage costs by aligning electricity use with periods of lower wholesale prices, such as charging electric vehicles or operating appliances during off-peak hours. However, using electricity during higher-priced periods could result in significantly increased bills. The proposed changes would only be available to customers with smart meters capable of recording electricity use at specific times.

Suppliers would need to clearly explain price changes, risks, costs, and benefits before signing a dynamic-price contract. Customers would also be able to monitor their electricity consumption and price changes through online accounts. The amendments aim to streamline the process of switching electricity suppliers, with free switching for household and smaller non-household consumers.

Customers could potentially select an EU-member state or Energy Community supplier authorized to operate in Ukraine's market. The proposed changes align with legislation aimed at bringing Ukraine's energy market closer to EU standards as part of Kyiv's accession bid.