All the electricity put up for sale was sold at the long-term auction
The Ukrainian Energy Exchange has reported the results of the auctions.
Energoatom sold 405,667 MWh of electricity. Depending on the delivery period and schedule, the weighted average price ranged from 5,012.53 to 6,255.64 hryvnias per MWh.
Ukrhydroenergo sold 56,481 MWh at a weighted average price ranging from 4,700 to 6,336.07 hryvnias per MWh.
The total volume sold amounted to over 462 million kWh. All lots offered by state-owned producers found buyers.
The exchange price, when converted, ranged from approximately 4.70 to 6.34 hryvnia per kWh. However, this cannot be directly compared with the tariff shown on your bill, as it is the wholesale price of the energy itself, not the final cost of supply to the consumer.
Who bought the electricity
Fifty-three companies took part in the special sessions on 13–14 July. Following the auction, 21 buyers were declared the winners.
Twenty-eight companies took part in the sessions on 20–21 July, of which 15 were granted the right to enter into contracts with state-owned producers.
The names of all buyers are not disclosed in the announcement. Participants in such auctions may include electricity suppliers and non-domestic consumers who purchase electricity under bilateral contracts.
The first packages provide for electricity supplies in August–September and August–December 2026.
What are long-term auctions?
The new mechanism was introduced by Cabinet of Ministers Resolution No. 799. It obliges ‘Energoatom’ and ‘Ukrhydroenergo’ to offer a portion of their planned generation at special auctions with long-term supply periods.
On the standard short-term market, the price of electricity can fluctuate significantly on a daily or even hourly basis. A long-term contract allows the seller and buyer to agree in advance on the volume, price and supply period.
For state-owned producers, this means predictable revenue over several months. Buyers, in turn, can plan their expenditure in advance and be less dependent on short-term price fluctuations.
Under the new rules, state-owned companies must allocate 2 per cent of their planned production for the relevant quarter to quarterly auctions. For half-yearly and annual contracts, the allocation is set at 1 per cent of planned production.
At least five buyers must be admitted to participate in the auction. Otherwise, the auction is deemed not to have taken place. Participants must also pay a deposit, the amount of which depends on the duration of the future contract.
Will the tariff for households change?
The results of long-term auctions do not automatically lead to an increase or decrease in the tariff for domestic consumers.
The auctions determine the wholesale price of electricity for market participants and non-domestic buyers. The tariff for households is set by the government through a separate decision within the framework of its specific obligations in the electricity market.
At the same time, long-term contracts may indirectly influence market stability. If suppliers and large consumers have their supply secured in advance, they are less dependent on sharp price fluctuations in short-term markets.
The complete sale of the volumes offered indicates high demand for electricity from state-owned generators, but does not in itself guarantee lower prices for businesses or households.
The next round of auctions will cover almost a year
The next round of long-term auctions is scheduled for 27 July 2026. Electricity with a supply period from August 2026 to June 2027 will be put up for auction.
Concluding 11-month contracts will allow producers to plan their revenues in advance, and buyers to plan their procurement volumes and expenditure for most of the coming year.
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