Energoatom proposes to increase the marginal price for unloading in the balancing market up to 80% of the DAM price

To avoid speculative actions in the electricity market, it is necessary to increase the unloading price in the balancing market (BM) to 80% of the actual day-ahead market price (DAM). NNEGC Energoatom submitted such a proposal by letter to the National Energy and Utilities Regulatory Commission (NEURCU), the press service reports.

Energoatom supports the position of NEURC on the need to amend the Market Rules and oblige its participants in their applications for balancing electricity to indicate a price of at least 80% of the DAM price.

It is noted that as a result of the current low level of the marginal price for unloading (55%), the market is distorted and Energoatom receives significantly less funds for the settlement of imbalances.

In addition, according to PSO, Energoatom must ensure the weighted average selling price of electricity in all market segments at a level not lower than the cost of covering the cost. Taking this into account, Energoatom emphasizes that in conditions of a significant social burden on the company, it is possible to fulfill this requirement only in the absence of speculative actions in the market.

“It is worth recalling that USAID (United States Agency for International Development – an independent agency of the US federal government, which is responsible for non-military assistance of the United States to other countries) has developed recommendations on pricing and settlement of the DAM and the BM. In order to avoid artificial trade on the part of manufacturers or suppliers who have the opportunity to buy undeveloped volumes with a 45% discount, experts advise to increase the marginal price of the BM unloading to 80-90% of the actual price of the DAM,” the statement says.

Tags: The Cabinet of Ministers, contracts, NNEGC "Energoatom", legislation, electricity, NEURC, USA, electricity market, foreign affairs, debt, PSO, DAM, investments, price, agreement, volumes, The National Energy and Utilities the Natuonal Regulatory Commission, power system balance, electricity transmission, balancing market, population, power system, generation, crisis, The Ministry of Energy, economy, market, power grid, day-ahead market, electricity consumption, supplier

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