Consultation staged by RAE, the Regulatory Authority for Energy, on a formula determining a non-compliance fee for unlawful submission of sales orders in the day-ahead market for 2023 has prompted reaction from energy companies, fearing excessive penalties.

A formula proposed by the Energy Exchange is particularly strict, the Mytilineos group has commented, as it uses the average day-ahead market (DAM) clearing price for the day when the unlawful submission of a sale order by a production unit has taken place.

As price levels in the day-ahead market have increased significantly this year and are currently at 280 euros per MWh, the Energy Exchange’s proposed formula would lead to non-compliance charges worth hundreds of thousands of euros.

Power utility PPC, another participant in RAE’s consultation procedure, also believes the formula proposed by the Energy Exchange results in an excessive non-compliance fee. It has called for a review and implementation of tiered charges.