Antimonopoly Committee investigates into anticompetitive schemes at Ukrainian electricity market

Source : 112 Ukraine

This decision was made due to significant fluctuations in sales in the wholesale electricity market
12:59, 6 July 2021

Open source

The Antimonopoly Committee of Ukraine (AMCU) has launched an investigation on its own initiative. It aims to find out possible violations of the legislation on protection of economic competition by electricity market participants. This was reported by the AMCU press service.

Significant fluctuations in sales in the wholesale electricity market over the past few days led to this decision.

“In the last few days, there have been significant fluctuations in electricity purchases and sales, particularly in the day-ahead market (DAM). It is known about a sharp decline in demand over the past few days due to reduced electricity purchases in the DAM by some market participants,” the statement said.

At the same time, there was a simultaneous increase in the bilateral markets purchases.

This in turn led to a sharp drop in prices in the first days of July.

Related: How does Ukrainian electricity market work?

According to Market Operator, trading volumes in the DAM for 02.07.2021 amounted to 58,377.20 MWh, which is 35.5% less than in the previous day. At the same time, the weighted average price for DAM on July 2, 2021 was $ 42/ MWh. This is 22.2% lower compared to 01.07.2021.

The National Commission for State Regulation of Energy and Public Utilities also reports a sharp decline in the electricity price for DAM in the first days of July 2021 due to the demand in the market of bilateral agreements. As a result, the volume of DAM trade decreased by 32,293 MWh, or 40%, and the weighted average price of DAM decreased by 29% to $ 38/ MWh. There was also a significant increase in the bilateral market.

“According to the AMCU’s experts, these consequences could be caused by the synchronous activities of certain participants in the electricity market. It could also affect the reduction of the DAM price due to reduced demand,” the Antimonopoly Committee said.

As it was reported earlier, on June 16, the National Commission for State Regulation of Energy and Public Utilities increased the maximum limit prices in the day-ahead electricity market and the intraday market.

Related: Google pays $36.417 fine to Antimonopoly Committee of Ukraine

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