Measures prepared by RAE, the Regulatory Authority for Energy, with the aim of restricting offers in the balancing market following sharp price rises since November’s launch of new target model markets, are expected to be implemented this week as soon as the authority’s related decision is published in the government gazette.
To check the effectiveness of the new measures, electricity suppliers, hit hard by higher wholesale prices, have conducted simulated testing by applying the interventions to a considerable number of randomly selected 24-hour periods since the target model’s launch.
According to sources at some electricity supply firms, the testing has shown these measures can contain surcharge cost increases to single-digit figures.
The measures to be implemented any day now will combine to effectively create an upper limit for balancing market prices at levels of approximately 10 euros per MWh, as long as producers continue to exercise restraint when submitting offers, the sources added.
However, levels of approximately 10 euros per MWh remain unsatisfactory as they are many times over the balancing cost’s mandatory pool, ranging between 2 to 3 euros per MWh, the sources stressed.