The Energy Traders criticize the Methodology for determining the prices of balancing electricity
Energy traders continue to criticize the Methodology for determining the prices of balancing electricity, which, after its change on May 1, several times led to extreme prices for balancing electricity. They believe that the industry-shocking May 19 may repeat itself and lead to bankruptcies, legal proceedings, and high electricity bills. This view is expressed in an open letter from the Association of Energy Traders in Bulgaria (AETB), addressed to RES producers. It states that the decision of the Energy Commission
The need for transparency in the energy market
The recent decision by the Water and Energy Regulatory Commission (WERC) to require the Electricity System Operator (ESO) to apply an additional coefficient and recalculate the results from May 19, returning some of the excess funds, is seen as insufficient by experts. According to the Association of Trading Companies in Energy (ATCE), the problem lies not with the traders, as stated by WERC, but with the Methodology itself.
The approved Methodology fails to fulfill its main purpose, which is transparency in the balancing market – there is a lack of information on which capacities and at what prices are being traded. This lack of transparency undermines the trust in the energy market and hinders its efficient functioning.
Managing Power System Imbalances
Ensuring a balanced power system is crucial for every settlement period. According to experts, various mechanisms such as changes in methodologies, monitoring systems, and power management systems need to be implemented to minimize imbalances. Failure to address this issue could result in a significant increase in prices for all participants, leading to inflation and impacting the pockets of citizens.
Why Changes in Methodology are Not Expected
It is unfortunate that a change in methodology is not foreseen and the situation is being analyzed, which will require several months.
