Electricity prices will be able to change during the day: National Energy Commission prepares new rules

The National Commission for State Regulation of Energy and Public Utilities has approved a draft amendment to the Retail Electricity Market Rules, which provides for the introduction of contracts with dynamic pricing. Consumers who have smart meters will be able to use this format.

Under such a contract, the cost of electricity will not be constant: it will change depending on price fluctuations in the "day ahead" market and the intraday market.

In fact, this will allow consumers to take into account changes in the cost of electricity during the day and shift part of their consumption to periods when electricity is cheaper on the market.

However, the transition to dynamic pricing will not be mandatory. The consumer will independently decide whether to switch to this billing format.

Who will be able to switch to dynamic pricing

The main technical condition will be the presence of a smart meter that allows recording electricity consumption for separate time periods.

Electricity suppliers serving more than 200,000 consumers will be required to provide customers with smart meters the opportunity to enter into contracts with dynamic pricing.

Before concluding a contract, the supplier must explain to the customer what factors will affect the cost of electricity, and also warn about possible benefits, risks and additional costs. In the personal account, the consumer will be able to see data on their own consumption and changes in the dynamic price for the relevant periods.

The mechanism of contracts with dynamic pricing is already provided for by legislation. In particular, the law gives owners of smart meters the right to conclude such contracts and obliges large suppliers to have a relevant public commercial offer. The NEURC is now bringing the retail market rules in line with these norms.

Changing supplier will become easier

The NEURC draft also provides for other changes in the retail market. In particular, changing electricity supplier for household and small non-household consumers should be free of charge.

Also, consumers are planned to be allowed to choose a supplier registered in a country of the European Union or the Energy Community, if such a company has obtained the right to operate on the Ukrainian market.

The NEURC explained that the changes are part of the integration of the Ukrainian energy market with the European one and should expand consumer rights.

At the same time, the new rules have not yet entered into force. Currently, the Regulator has approved the draft resolution, which should be published for comments and proposals.

Based on materials: NEURC