Ukrainian Energy Exchange started to publish month price index of base load electricity.

In order to stabilize prices on the Ukrainian electricity market, which were caused by high price volatility of Day-Ahead market (DAM), measures were taken aiming to move away of pricing linked to DAM. Corresponding amendments to the legislation, which allows forming in Ukraine reliable price indicative for the electricity based on the bilateral contracts market (BCM) that is the basis of the electricity and energy market.

Ukraine Energy Exchange has presented price index BCM on the market, which shows base load price of electricity in the “IPS of Ukraine” for the next month (М + 1). The index value is formed during the month preceding the calculation month on the basis of the weighted average prices of base load electricity over the supply period covering the full calendar month M + 1.

The calculation of the index includes all agreements concluded according to the results of the trades both in the specialized section and in the commercial section. The agreed methodology contains limitations on the consideration of indicators that may distort the calculated values. These exceptions allow to form a more representative index of the bilateral contracts market.

On the site of UEEX you can view information on the value of the monthly base load index from the beginning of the year. Thus, for September 2021 the value of the index is fixed at 1737.9 UAH/MWh (excluding VAT). The Exchange publishes the current index value for October, which is updated according to the results of September trading days. The final index value is formed based on the results of the last trading day of the calendar month preceding the billing month.

"In accordance with European practice, the pricing market in the electricity market is the market of bilateral contracts. The market should rely on the BCM prices. The basic market price forms an important basis for the operations of market participants. The UEEX has taken a first, but very significant step in this direction. We are working with the authorities and regulators to ensure high transparency of the BCM, to ensure price stability and high economic efficiency. Going forward, we are working to standardize contracts and products at UEEX to provide the market with even more representative price indicators." - Oleksii Dubovskyi, Chairman of the UEEX LLC Exchange Committee, commented the launch of the index.