The electricity market in Ukraine is heavily dominated by DTEK, a company owned by oligarch Rinat Akhmetov. Now the anti-monopoly committee is looking in to it.
According to Kyiv Post, the anti-monopoly committee of Ukraine is looking in to the electricity market to investigate “potential economic competition violations,” they report based on a message posted on the committee website.
The committee is launching the investigation because of a spike in the volume of Day-Ahead Energy trading, where energy is bought and sold at fixed prices one day ahead of delivery, meaning people buy energy today, that they intend to use and receive tomorrow.
According to the State Enterprise Market Operator, Kyiv Post writes, the price of electricity in the DAM market fell by 35.9 percent on the fourth of July compared to the previous day. Compared to the prices on the first of July, the prices were 3.5 times lower.
Few people with a lot of money have the power to manipulate the Ukrainian energy prices at will. This is mostly because the Ukrainian electricity system is not connected to the European market.
The consequence of this is, that Ukraine does not have the same access to a energy market where prices are more floating but also more stable, because the overall amount of energy buzzing around on the European market is so large, the market is also more stable.
Joining the electricity market is one of the things on the Ukrainian state’s to-do list and work is under way to connect to the market, even though some have interests in remaining shut off from the outside market, namely DTEK and Akhmetov as they will be able to a large extent to set the prices on energy, which is favourable when they also produce – by far – most of Ukraine’s energy.