site.btaIndependent Bulgarian Energy Exchange Suspends Trade Temporarily Due to Price Spike, Blames Technical Error

120 - ECONOMY - ENERGY EXCHANGE - SUSPENDED TRADE - amp 1

Independent Bulgarian Energy Exchange
Suspends Trade Temporarily
Due to Price Spike, Blames Technical Error


Sofia, October 10 (BTA) - The Independent Bulgarian Energy
Exchange (IBEX) announced Wednesday that the Intraday Market is
temporarily unavailable until the Day-ahead Market's prices are
confirmed or another decision is made. The unprecedented action
follows an unprecedented spike in the price of electricity asked
for delivery on October 11.

Later in the day, the Exchange explained the spike by a technical error in a bid by one of the market participants. IBEX said it would re-run the Day-ahead market auction for October 11 and promised to cancel it altogether if the re-run was unsuccessful.

Wednesday's base-load price was close to 596 leva/MWh while in
the past six days it was between 66 and 102 leva/MWh.

"Capital Daily" recalls that for weeks now electricity traders
and large corporate consumers have been warning that the
electricity market is manipulated. The energy regulator has
opened a probe.

Energy expert Atanas Tassev told BTA that such spikes are not
unusual and there is no reason for concern. "This is a very
small share of the total energy market and there is no way to
avoid such situations," he commented.

He believes that the market situation reflects "some minor
issues", including repair of generation facilities which are
common during the summer and autumn. Also, the Kozloduy N-plant
has reduced the quantities offered on the free market and this
is causing anxiety because only the N-plant, the Maritsa East 2
and water power plants produce cheap electricity, and all other
electricity output is expensive, he explained.

Tassev also said that the free energy market in Bulgaria "is
essentially torpedoed by the huge asymmetry" caused by the
energy producers which get preferential - higher - prices for
their output.

The energy regulator can do nothing about this process, he
argued.

Solar plants will continue to enjoy preferential rates for their
electricity until 2032. LN/

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