LCU project leader Dr. Zachmann: Launching a new electricity market must be postponed to address important risks

Dr. Zachmann explained that LCU analyses indicate a decoupling of wholesale market prices and marginal costs of production, leading to prices well above those in neighbouring countries. The reason can be found in structural problems of the Ukrainian electricity market, that is characterized by a significant concentration in generation (and resulting risks of market power abuse), the isolation of the power system and cross subsidies. Those issues can only be addressed by structural measures.