Fingrid proposes the postponement of an increase in the price cap balancing market until the end of winter
Fingrid has appealed the Energy Authority’s decision of 2 September 2022 concerning the technical price limit for the manual frequency restoration reserves with manual activation (mFRR)in the balancing market. Fingrid’s amendment request proposes the implementation of the price cap of EUR 10,000 on 1 April 2023 at the earliest.
On 2 September 2022, the Energy Authority issued a decision obligating Fingrid to comply with a technical price limit of +/- EUR 10,000 per MWh in the balancing power market. The decision required the price limit to be applied by 1 November 2022.
Several Finnish market parties and their representatives have contacted Fingrid recently with their concerns about the new technical price limit in the balancing market. The price of mFRR energy market affects the price of imbalances and the collateral requirements imposed on balance responsible parties. The elevated financial risks caused by higher electricity prices in various market have impacted market parties and their operating conditions.
The European Commission has given Member States wide-ranging freedoms to take extraordinary measures to mitigate the impacts of the energy crisis. In these extraordinary circumstances, it is Fingrid’s view that postponing the rise in the price cap for mFRR energy market until 1 April 2023 at the earliest is a way of calming the electricity market and safeguarding the operating conditions in the sector over the coming winter. Until that date, the current technical price limit of EUR 5,000 per MWh would remain in effect.
Asta Sihvonen-Punkka, Executive Vice President, Markets +358 50 573 9053
Marja Eronen, Senior Expert, Electricity Markets, +358 30 3954457