Committee to address risks of manipulating electricity market

The Anti-Corruption Select Committee of the Riigikogu in Estonia is set to deliberate on the development of regulations for the electricity market, strategies to mitigate the risks of manipulation, and oversight during its upcoming meeting on Monday.

Anastassia Kovalenko-Kõlvart, the committee’s chairwoman, highlighted the urgent need to review the system governing the formation of electricity prices, especially in the context of the record-high prices witnessed in 2022. At that time, there were discussions about enhancing the transparency of the Nord Pool power exchange to gain a better understanding of how electricity prices are determined and to prevent instances where a producer deliberately offers less energy to the market than they are capable of producing in order to sell a reduced quantity at inflated prices. Despite the previous dialogue surrounding these issues, no concrete reforms materialized. Now, with electricity prices skyrocketing to 400 euros per megawatt-hour, concerns regarding transparency in the power exchange have taken a back seat.

The committee has extended invitations to key stakeholders for the upcoming session, including Evelin Pärn-Lee, the Director General of the Competition Authority, and Marilin Tilkson, the Head of the Energy Service. Additionally, Erkki Sapp, a member of the management board of Elering AS, a representative from the Ministry of Climate, and Märt Ots, the head of the Safety Investigation Bureau and former director general of the Competition Authority, are expected to attend.

The session is slated to commence at 1:15 p.m. and promises to delve into critical issues concerning the functioning of the electricity market and measures to safeguard against manipulation risks. The gathering of these influential figures underscores the gravity of the situation and the shared commitment to address the challenges plaguing the electricity sector. By bringing together experts from various organizations and regulatory bodies, the committee aims to foster a comprehensive discussion that paves the way for effective reforms and enhanced oversight in the electricity market.