NEURC imposed sanctions on traders for resale of electricity of unknown origin
The National Energy and Utilities Regulation Commission (NEURC) warned traders and electricity suppliers against trading operations that result in a negative balance, i.e, trade in volumes of electricity of unproven origin (production or import), The NEURC also established sanctions (expulsion from trades in bilateral contracts market for 7days or for 30 days in case of a repeated violation) on companies that would generate a negative balance.
The corresponding decision was made at the NEURC’s weekly meeting on June 2, 2021.
According to the NEURC’s substantiation, in May 2021, most traders and suppliers of electricity submitted a large number of electricity sale nominations at low prices.
"At the same time, there is a certain cyclical scheme of resale of electricity with a dubious source of origin in various market segments of bilateral agreements, the day-ahead market, and the intraday market through several "intermediate" companies," the NEURC wrote.