KEVR imposed sanctions for over BGN 2 million due to manipulation of the wholesale electricity market

Photo: Bloomberg LP

The Commission for Energy and Water Regulation (KEVR) imposed a sanction on two companies trading in electricity for manipulation of the wholesale market. The penalty was imposed on “Most Energy” and “Kumer”, and the violations were committed in January and June 2020, according to the energy regulator.

The two companies have carried out transactions that are in violation of the European regulation on integrity and transparency of the REMIT market. Because of this, a sanction of BGN 1.06 million was imposed on them, the amount being determined according to the Methodology of Sanctions and Fines imposed under the Energy Act. In establishing the violation, KEVR worked with the support of the Agency for Cooperation of Energy Regulators (ACER).

The commission’s decision can be appealed to the Administrative Court in Sofia.

This is the third KEVR decision on penalties for manipulation of the wholesale electricity market, but the financial sanction is the largest so far. In the fall of 2022 the regulator fined six companies, including the National Electric Company (NEK), with BGN 1.25 million due to manipulative transactions in 2019. The fine for NEK reached a little over BGN 625,000.

In March 2023 it was the dealer Energy Supply was also sanctioned due to market manipulation in the period January – March 2022 with the amount of BGN 165 thousand. Inspections found that the company had breached REMIT by layering orders and issuing bogus orders. In this way, a false impression was created of a downward trend in prices on the stock exchange, and the company took advantage of cheaper supply offers.