Managing load shedding in Ukraine: rationing rules, imports and demand response

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Management of power system imbalances leaves scope for market mechanisms:

Destruction of generation and transmission assets has caused severe power shortages, especially before and during heating seasons as well as in summer when nuclear power stations undergo maintenance. 

Heavily regulated retail and wholesale markets, including price caps, prevent efficient use of price signals. As a result, electricity supply needs to be rationed through both planned and unplanned outages.

Scheduling and publishing outages has become increasingly complex and opaque, reducing predictability and limiting consumer choices.

Business and industry consumers may exclude themselves from scheduled outages by importing electricity or self generation, but these options are costly, risky and subject  to bureaucratic hurdles.

High premiums for imports and self-generation reflect strong willingness to pay for reliable supply.