The price of light: why Ukrainians pay many times more for electricity than EU residents
11 August 18:53
on August 10, 2025, electricity prices in Ukraine once again became the highest among the countries of the European Union and neighboring markets. This is reported by "Komersant Ukrainian" with reference to data from the European Network of Transmission System Operators for Electricity (ENTSO-E).
According to them, the BASE price index on the day-ahead market in Ukraine amounted to UAH 5,337.84/MWh, which is more than twice as high as in most EU countries.
For comparison, the average values of the BASE index in the EU countries on the same day ranged from 7 euros/MWh (approximately UAH 338) in Sweden to 56 euros/MWh (approximately UAH 2,678) in Portugal and Spain.
Where electricity is the cheapest
The lowest electricity prices on August 10 were recorded in:
- Sweden – 338.04 UAH/MWh;
- Norway – 734.26 UAH/MWh;
- Finland – 879.15 UAH/MWh;
The Baltic countries also demonstrated relatively low electricity prices: Latvia – 1 115.90 UAH/MWh, Lithuania – 1 115.90 UAH/MWh, Estonia – 1 112.56 UAH/MWh.
Market leaders in terms of high electricity prices
In addition to Ukraine, where the cost exceeded UAH 5.3 thousand, Serbia (UAH 3,045.33/MWh) and Greece (UAH 2,567.12/MWh) are among the countries with overpriced electricity. In most EU countries, the figures remain in the range of UAH 2,100-2,600 per megawatt-hour.
Why do we have to pay the highest price for electricity in Ukraine?
Energy market experts explain this difference by a combination of several factors:
1. The shortage of generation due to restrictions on the operation of nuclear, thermal and hydroelectric power plants, which are caused by both technical problems and the consequences of shelling of energy infrastructure.
2. High dependence on imports during peak consumption hours. Due to low prices in some European countries, electricity imports to Ukraine are sometimes economically viable, but the available cross-border connections are limited.
3. Seasonal factor. Traditionally, August is a month of increased consumption due to the use of air conditioners and cooling equipment, which increases the load on the system.
4. Military risks. Investors and suppliers price in the risk of new attacks on energy infrastructure, which creates an additional “risk premium” in tariffs.
Europe as a part of the world with contrasting electricity prices
If we convert prices into euros, the cost of Ukrainian electricity on August 10 was about 111 euros/MWh. This is 16 times more expensive than in Sweden and almost twice as expensive as the average level in most EU countries.
For comparison, in Germany, the price of electricity was UAH 2,259.46 (about 47 euros), in Poland – UAH 2,284.74 (about 47 euros), and in France – UAH 1,593.43 (33 euros).
Read also: Tariff will increase to UAH 9: how much Ukrainians will pay for electricity
Electricity in terms of price prospects for Ukraine
According to analysts, the key factor for lowering prices in Ukraine will be the stabilization of generation and the expansion of import opportunities from the EU. At the same time, if the shelling of energy facilities continues, the risk of new price peaks will remain high.
The Ministry of Energy has previously noted that in the second half of the year it plans to make more active use of repair windows to prepare the power system for winter, but this may be accompanied by additional restrictions on generation and price increases during peak hours.
The August price statistics once again emphasize the scale of the problem: despite integration with the European energy system ENTSO-E, the cost of electricity for the Ukrainian market remains significantly higher than in the EU, and bridging this gap will require not only technical solutions but also a strategy to restore energy capacities.
Electricity tariffs for the domestic market: when Ukrainians will have to pay more
In Ukraine, the likelihood of an increase in electricity tariffs for households is growing again, and this time the changes may begin as early as November 1, 2025.
The reason is that on October 31, a government decree that provided a mechanism for compensating part of the cost of electricity, allowing consumers to pay at the current tariffs, expires. After that, the restrictions may be lifted, paving the way for a new price review.
Unlike gas, heat or hot water tariffs, electricity prices are not protected by a moratorium. This allows the regulator to change prices even during martial law. During the period of full-scale invasion, the tariff tripled: from UAH 1.44 per kWh in early 2022 to UAH 4.32 on June 1, 2024.
The increase, which was originally scheduled for June 2025, was postponed, probably for political reasons, to avoid a negative impact on electoral sentiment on the eve of important political decisions. However, now the factor of possible elections seems to be no longer a deterrent, and the decision can be made without further delay.
Energy experts warn that if the compensation mechanism is canceled, the tariff could rise significantly, as the cost of electricity in Ukraine remains high due to the consequences of the destruction of energy infrastructure, restoration costs, and significant losses in the networks. The situation is also affected by the need to increase funding for repairs before the winter season, when the load on the power system will increase.
At the same time, consumers can still reduce their own costs by installing dual-zone meters. They allow consumers to pay for electricity at night at a rate that is half the daytime rate, i.e. UAH 2.16 per kWh. This system is especially beneficial for those who can shift some of their energy consumption, such as running washing machines or dishwashers, to nighttime hours.
The new tariff, if approved in November, will be another challenge for households already burdened by rising prices for goods and services. For the Government, this decision is a balancing act between the need to finance the energy sector and the risk of social discontent.
Although the final figures for the possible increase have not yet been announced, market participants do not rule out that the tariff could rise by another 20-30%, especially if the fall-winter season is accompanied by new large-scale attacks on the energy system. At the same time, energy experts say that without additional investments in restoring grids and generating capacity, Ukraine risks facing more serious power outages than in previous winters.
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