UEEX Section Council discussed reform of guarantee fees: Polish experience,market challenges,change prospects

On April 25, 2025, a meeting of the Section Council in the Electricity direction was held at the Ukrainian Energy Exchange LLC, during which market participants, together with representatives of the exchange and the expert community, considered current issues of the functioning of the bilateral contracts market and the initiative proposed by the NEURC at the meeting of the Auction Committee for the Sale of Electricity under bilateral contracts at electronic auctions (protocol No. 39 of April 18, 2025), in terms of introducing mandatory guarantee deposit norms for sellers/producers of electricity.

At the opening of the meeting, Oleksii Dubovskyi, Chairman of the Exchange Committee of UEEX LLC, delivered a welcoming speech. Roman Matvienko, Director of Government Relations at UEEX, was elected chairman of the meeting. The discussion was attended by representatives of the companies - members of the Section’s Council.

The main topic of the meeting was the discussion of amendments to the Regulations regarding the application of a guarantee fee to ensure the fulfillment of obligations under a bilateral electricity purchase and sale contracts. The participants focused on the importance of achieving a balance between the interests of all market participants and avoiding precedents and cases of non-fulfillment of bilateral contracts concluded as a result of electronic auctions.

International experience was presented during the meeting. Market expert Krzysztof Ragulski shared the practice of long-term contracts on the Polish market. In particular, it was emphasized that the introduction of guarantee mechanisms significantly reduces the risks of supply disruption and strengthens confidence in exchange-traded instruments. According to the expert, such payments are not considered as a prepayment for electricity, but as insurance against failure to fulfill the terms of the contract. He emphasized that in the context of high market volatility, such safeguards are mandatory to protect the interests of end users.

The participants of the meeting expressed different opinions on the feasibility and forms of implementation of the innovations, noting the need for additional analysis of legal and financial aspects.

The meeting demonstrated the interest of participants in increasing the transparency and reliability of exchange trading. The UEEX is ready for further dialog with the market and is open to suggestions from participants.