The increase in the cap price for electricity in Ukraine may lead to large-scale negative consequences for the economy, particularly the shutdown of several enterprises that will become unprofitable. Economist Taras Zahorodny warns that such a step will effectively contribute to the deindustrialization of the country and the loss of industrial potential, which even the ongoing hostilities have not managed to destroy.
This is reported by Finway
Risks for Industry and the Population
According to the expert, this week the national regulator – the National Commission for State Regulation of Energy and Public Utilities (NERC) – is preparing to approve a new increase in electricity prices for businesses. On April 7, 2026, the regulator approved a draft resolution regarding the review and establishment of new cap prices. The justification text has been published on the official NERC website.
“I will be frank, the decision is more than questionable from both an economic and political feasibility standpoint,” said Zahorodny.
The economist emphasized that electricity tariffs for industry in Ukraine are already the highest in Europe, and their further increase could threaten a deep economic crisis. Representatives of energy-intensive sectors, such as metallurgy, chemical industry, and machine engineering, are categorically opposed to raising the cap prices. They point out that the rising cost of electricity will automatically lead to increased production costs, financial losses, and ultimately – to rising prices for goods and further impoverishment of the population.
Reasons for the Increase and Alternatives
The price cap mechanism, introduced in 2019 to protect national producers from sharp price fluctuations and attract investment in the energy sector, has not met expectations, according to the expert. Instead, corrupt schemes for obtaining superprofits have formed in the industry. Zahorodny emphasizes that instead of modernizing the energy sector and developing alternative sources, the regulator chooses administrative price increases.
NERC justifies the need to raise the price cap to 17,000 UAH/MWh by the impact of changes in European markets and the threat of halting electricity imports to Ukraine. The main reasons cited are military actions and generation shortages. At the same time, according to Zahorodny, imported electricity accounts for only 15–20% of consumption structure. This demand can be met with cheap electricity from Ukrainian nuclear and hydroelectric power plants.
Among alternative solutions, the expert mentions the introduction of special obligations in the gas market, requiring suppliers to sell gas at a fixed price. If the gas price for electricity production remains at 19,000 UAH per 1,000 cubic meters, this, in Zahorodny’s opinion, will help stabilize the situation in the energy market.