Friday, December 8

European power grid operators and exchanges urge change to price rule

Article content

COPENHAGEN — Europe’s transmission system operators (TSOs) and electricity exchanges have urged the EU to change the mechanism used for raising the power market price ceiling in a bid to protect consumers and supply, Finland’s grid operator said on Friday.

The request called for a freeze to the so-called automatic maximum price adjustment mechanism, which is applied in the case of high prices.

Article content

“Raising the price ceiling in the current exceptional situation of the electricity market is worrisome and threatens to increase chaos in the market,” Fingrid said in a statement.

“In order to calm the situation, the application of the automatic price ceiling increase mechanism should be waived,” it added.

Fingrid said the grid operators and exchanges had sent a common letter to the European Commission and the EU agency for the cooperation of energy regulators (ACER).

ACER last week said it would like to review of the mechanism. (Reporting by Stine Jacobsen, editing by Terje Solsvik)