In July, the weighted average price of electricity on the day-ahead market (DAM) increased sharply by 23.5% to UAH 3,669.87/MWh compared to UAH 2,971.41/MWh in the previous month. This was reported by the state-owned company Market Operator on Wednesday evening.

This growth is noted as significantly higher compared to June, when the price increase was only 3.6%.

The market operator emphasized that average electricity prices on the DAM in Ukraine in July remained 7% lower than in the corresponding markets of Romania, Slovakia and Hungary. Back in June, they were 25% lower.

The weighted average price of accepted electricity on the intraday market (IDM) also increased by 36%, from 2935.68 UAH/MWh to 3994.16 UAH/MWh.

Such a very significant increase in electricity prices may have an impact on prices for business products and services, as well as slow down the rate of inflation, as the National Bank of Ukraine warned in July.

A sharp rise in electricity prices is becoming a challenge for businesses, as it can lead to higher production costs and threaten to reduce companies' profitability. The government and business should work together to find solutions to ensure a stable energy situation and reduce pressure on companies' budgets.