On January 5th, electricity prices in Finland reached an unprecedented high, exceeding two euros per kilowatt-hour in the evening. The Energy Agency conducted an investigation to determine if market manipulation was responsible for the unusually high prices. However, their findings showed that no illegal activity was involved.
The energy crisis peaked in January due to a combination of severe cold weather and low electricity production caused by maintenance work. Unexpected equipment failures such as that at Fortum’s Meri-Pori plant contributed to the crisis. Despite this, speculation arose regarding possible market manipulation by energy companies.
Despite no irregularities being found in block offers or intraday trading, consumption forecasts were difficult to predict accurately due to the tight demand situation. This resulted in losses for many electricity traders who sold excess electricity at lower prices the following day. Consumers only began reducing their electricity consumption significantly on the Friday of the crisis, leading to reports of families struggling with high prices in the media.
The Energy Agency’s investigation provided insights into the factors contributing to the unprecedented electricity prices and highlighted the need for improved forecasting methods to mitigate future energy crises. Although energy companies faced challenges during this crisis, no illegal activity was found in block offers or intraday trading, and there were no signs of market manipulation by energy companies.
In conclusion, while unexpected equipment failures and severe weather contributed to record-high electricity prices during January’s energy crisis, there were no signs of market manipulation or illegal activity involved in setting those prices. The Energy Agency conducted a thorough investigation into these issues and highlighted the need for more accurate consumption forecasting methods to prevent future crises from occurring.
