"Specifically, the meeting approved amendments to the Temporary Procedure for purchasing ancillary services to ensure frequency and active power regulation in the Integrated Power System (IPS) of Ukraine—namely, providing replacement reserves (tertiary regulation). These changes were developed by NEC Ukrenergo in line with relevant protocol decisions," the statement reads.
The primary goal is to create conditions for utilizing additional generating equipment to maintain system balance, especially in the most vulnerable frontline regions.
Key Regulatory Changes:
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Gas Price Caps: The regulator approved a price ceiling for natural gas for electricity producers in cases where fixed prices under the Public Service Obligation (PSO) mechanism are unavailable.
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Ancillary Services: The procedure for purchasing ancillary services has been extended to gas-fired power producers covered by the PSO mechanism.
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Cost Updates: NEURC updated the level of fixed (quasi-permanent) costs for producers.
"Implementing this decision is expected to allow certain generating capacities to continue operations, enhancing Ukrenergo's ability to balance the IPS of Ukraine. This will also contribute to more stable operations during periods of peak load," the regulator noted.
Context:
Tertiary regulation is performed manually via commands from the system operator to keep energy system parameters within limits, replacing primary and secondary regulation measures when necessary.
In May, several district heating companies began purchasing gas at unregulated prices on the Ukrainian Energy Exchange. For instance, "Cherkasyteplokomunenergo" bought 100,000 cubic meters of gas at ₴22,700 per 1,000 cubic meters (excluding VAT) for the period of May 8–18.
In March, the Cabinet of Ministers extended special obligations for gas sales at fixed prices for new gas-fired power producers in frontline regions until September 30, 2026. However, the government removed the clause regarding fixed-price gas supplies for all other TPPs, CHPs, gas turbine, and gas engine units.
