Open electricity market – regulators view

1. Open electricity market –
regulators view
Rolands Irklis
Latvian Public Utilities Commission
Commissioner
05.11.2013.

2. Opening of Electricity Market in Latvia
Since year 2007 all consumers are eligible to buy electricity in open retail market

3. Nord Pool Spot in Latvia
June, 2012.
January, 2013.
June, 2013.

4. Electricity market in Latvia, conditions and challenges

5. Traded amount of energy in Latvia (MWh)

6. Electricity market in Latvia, conditions and challenges
.
•Estonia – Latvia
•Russia/Belarus – Baltic market

7. Electricity market in Latvia, conditions and challenges
This brings following effects:
High vulnerability of the market – since there is
highly concentrated market and generation and low
liquidity the pivotal market participants has great
impact on prices and ability to influence the market.
Every single buy or sell bid can have significant
impact to the spot price.
Easy to analyse – since there is small number of
market participants it more easy to follow each
behaviour and each case.

8. Challenges during investigations

9. Case in Latvian zone – 25th of June

10. Case in Latvian zone – 25th of June
July 3, 2013 PUC sent out information request to NPS market surveillance
July 18, 2013 PUC sent information request to 6 Latvian NPS market participants
PUC received first data set from NPS which were not appropriate to carry analysis
PUC carried out consultation on data received with NPS and requested clarifications
PUC request NPS permission to get data from NPS price zone in Lithuania and Estonia
August 22, 2013 all Latvian market participants has submitted required information
PUC proposed to host meeting of regulators, NPS and ACER representatives in Riga
NPS market surveillance prior to the meeting October 3, 2013 send their preliminary
assessment
In October 3, 2013 NPS presented outcomes, parties exchanged views, regulators
decided to ask additional information to market participants and exchange it by October
21, 2013
Consultation is still taking place among regulators and PUC and NPS staff
PUC will present their finding in regulators meeting day before next Miniforum, November
7, 2013

11. Latvia - preliminary conclusions
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Data received form NPS requires manual rearrangement to be used for market
participant behavior analysis and it is time consuming activity
In Latvia price zone 2 market participants placed offers for sales and 5 market
participants placed purchase offers, no congestion on EE-LV link
No breach of REMIT rules by market participants in NPS Latvia price zone for case of
June 25, 2013
Misunderstanding was related who should report UMM about grid limitation which
limited availability of power production capacity.
Findings are that:
• in Latvia wholesale (NPS LR price zone) market we have just few market
participants and therefore liquidity is low.
• Every single buy or sell bid has significant impact on the spot price.
Details of findings will be presented in the Baltic Regulators meeting day before Mini-forum
in Tallinn this November 7, 2013

12. Thank You
Rolands Irklis
Latvian Public Utilities Commission
Commissioner
05.11.2013.