Ukraine is introducing long-term electricity contracts for non-household consumers, giving businesses a new way to fix power prices for a quarter, half-year or full year. The mechanism will be tested through transparent competitive auctions.
The pilot will use 4 percent of generation from state producers Energoatom and Ukrhydroenergo. The structure divides volumes between quarterly, semiannual and annual contracts, allowing companies to choose the planning horizon that best fits their operations.
Why fixed prices matter
For business, electricity volatility complicates production planning, investment decisions and pricing. A fixed contract can reduce dependence on the day-ahead market and make future costs easier to forecast, especially for manufacturers and service companies with high energy consumption.
For state producers, the model can create more predictable revenue and reduce exposure to price drops in months when electricity supply is higher. This is close to standard European market practice, where long-term contracts support both buyers and producers.
The change does not affect household consumers. Its main purpose is to give companies a clearer planning tool and make energy costs less dependent on daily market movements. If the pilot works, long-term contracts could become an important part of Ukraine’s business environment during recovery.
