FAS: A DOCUMENT ON IMPROVING THE MECHANISM FOR DETECTING PRICE MANIPULATION IN THE WHOLESALE ELECTRICITY MARKET WAS APPROVED

The Ministry of Justice has registered the order of FAS Russia*

It includes a methodology for comparing price bids, as well as the requirements of their economic validity.

The Authority emphasizes that price manipulation in the wholesale electricity market can lead to price increase for end consumers.

The document defines the procedure for comparing the values of suppliers’ price bids that were submitted in the competitive selection for the day ahead in the price zones of the wholesale market, taking into account their parameters including the volume of electricity, the terms of electricity supply, the types of generating equipment and its operating modes, the cost of fuel on this equipment and the values of its consumption for electricity supply at a certain hour.

During the analysis of price bids, FAS Russia will compare the costs with the maximum limits of the specific consumption of conventional fuel for electricity production for various types of generating equipment.

The order assumes that these limits will be set by the Supervisory Board of NP "Market Council" in coordination with FAS Russia.

At the next stage, it is planned to evaluate price bids for compliance with the requirements by two calculation methods – based on planned and actual values of fuel costs.

The adoption of this document implies strengthening antimonopoly response tools by regulating the algorithm for verifying the economic validity of price bids, taking into account fuel costs for electricity production.

Reference:

*FAS Russia Order of March 27, 2023 No. 162/23 "On approval of the requirements for the economic validity of price applications for the sale of electric energy and the methodology for determining the compliance of price bids for the sale of electric energy with the requirements of economic validity” (Registered on April, 28 2023 No. 73196)