The electricity market regulators of the Baltic states will investigate balancing price fluctuations recorded in the region last week, which have raised suspicions that some market participants may have violated European Union (EU) rules prohibiting manipulation of the electricity market.
Regulators will examine whether the actions of market participants in submitting offers to the balancing market comply with the EU Regulation on Wholesale Energy Market Integrity and Transparency (REMIT), the Lithuanian National Energy Regulatory Council (VERT) announced on Tuesday.
According to VERT, in early August, price spikes exceeding 10,000 euros per megawatt-hour (MWh) were observed, based on publicly available information from Baltic system operators. Typically, in situations where the electricity system is short on supply, the price is around 360 euros, while in cases of surplus, it is approximately minus 75 euros.
Submitted offers must be based on marginal costs and alternative costs, VERT added.
EU regulations prohibit any conduct involving market manipulation or attempts to engage in such activities.
Following the conclusion of each investigation, if a violation is confirmed, regulators will impose penalties in accordance with REMIT and national legislation.
Balancing services are essential to maintaining a continuous balance between electricity generation and consumption. These services became particularly important for the Baltic states in February this year, when they disconnected from the Russian-controlled electricity system – the so-called BRELL ring – and synchronised their grids with continental Europe, making it necessary to independently secure balancing capacity.
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