The current model of Ukraine’s energy market operates based on temporary solutions and administrative interventions. In particular, this is due to the preservation of price caps that were introduced at the very beginning of the market reform.
This was stated by Ivan Plachkov, chairman of the All-Ukrainian Energy Assembly and former Minister of Fuel and Energy of Ukraine.
In his opinion, the price caps played an important role at the start of implementing a competitive market — to prevent excessive price fluctuations.
“Fluctuations can destabilize the market. That is why price caps were set — maximum and minimum prices — to keep the market operating within this corridor,” Plachkov explained.
However, he said that under the current crisis and war conditions, the market has not had the chance to exit this “artificial corridor.”
“But until today, maybe because of the war, I don’t know, we haven’t removed these price caps. Honestly, they should have been removed,” the expert believes.
At the same time, Plachkov is convinced that for the market to be stable and work for the future, administrative restrictions must gradually be replaced by market mechanisms.
