IPTO seeking penalty claims for ‘demand response failings’

The power grid operator IPTO is seeking penalty payments from industrial producers committed to the demand response mechanism, offering lower electricity tariffs for flexibility, over claims that they failed to comply with electricity usage reduction orders issued by the operator during the energy crisis in January.

According to regulations, penalties for such infringements range between 60 and 110 percent of compensation amounts offered to demand response mechanism participants over three-month periods.

RAE, the Regulatory Authority for Energy, which has been informed of the operator’s complaints and pursuit of penalty claims, acknowledges that certain industrial producers did not honor their obligations.

Some of the industrial producers believed to have failed to meet demand response mechanism requirements have, until now, refused to pay fines and, instead, are reacting against the IPTO complaints.

These industrial producers have apparently returned penalty invoices issued by the operator worth a total of 2.1 million euros.

At this stage, IPTO is examining whether the industrial producer rejections are justified. If so, the invoices will be cancelled. If not, the operator will insist on being paid the specified penalty amounts.

The demand response mechanism enables major industrial enterprises to benefit from electricity cost savings in exchange for shifting energy usage to off-peak hours whenever required by the operator.