NEURC adopts number of restrictive measures at emergency meeting to stabilize electricity market
The National Energy and Utilities Regulatory Commission (NEURC) at an emergency meeting on Friday evening adopted a series of restrictive measures aimed at overcoming the surplus in the electricity market and stabilizing prices.
Corresponding changes were made to quarantine resolution No. 766 dated April 8, 2020.
"Today, due to a surplus, unexpected or expected, due to the inclusion of 15 nuclear units, market actions have begun that we cannot welcome. Some may call it abuse. It may be a strong word, but the fact that Intraday market (IDM) is already comparable in volume to the day-ahead market (DAM), this is definitely an unhealthy situation. Therefore, we decided to regulate it," head of the NEURC Valeriy Tarasiuk said during the meeting.
Thus, the Commission has temporarily (until February 28) set a minimum price limit for IDM at the level of 105% of the DAM price, effective from today (February 5) until tomorrow.
In addition, the commission returned to the algorithm for calculating the fee for imbalances at the level of 115% of the IDM price.
According to its decision, if there is a system surplus in the united energy system, the settlement administrator, when writing off funds for imbalances, applies the payment price for a negative imbalance at the level of 115% of the DAM price.
"The reason is that we see an increase in the size of the balancing market, which is unhealthy, and therefore we increase responsibility. For now, from 5% to 15%, but we will continue to make a decision depending on the situation," Tarasiuk explained, indicating that this rule comes into effect from Sunday, February 6.
The next step of the NEURC was the introduction of the practice of checking the origin of electricity sales volumes on the day of supply in the bids for the sale of participants in the IDM/DAM, which comes into force on Monday, February 7.
"This is a continuation of our policy of combating air trade. We give this right to the market operator. We call on all participants to cooperate with each other and with us," the head of the commission said.
