Italy Fines Utility €5 Million on 2022 Power Market Manipulation

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessItaly Fines Utility €5 Million on 2022 Power Market ManipulationItaly’s energy regulator fined A2A SpA €5 million ($5.8 million) for market manipulation dating back to Europe’s energy crisis in 2022, finding that the company held back some gas plants from the market, pushing power prices higher.Author of the article:William Mathis and Alberto Brambilla You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Italy’s energy regulator fined A2A SpA €5 million ($5.8 million) for market manipulation dating back to Europe’s energy crisis in 2022, finding that the company held back some gas plants from the market, pushing power prices higher. 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Italy’s energy regulator Arera reported that A2A’s actions led to a “very significant” impact on prices during a year when wholesale power prices in the country soared to record levels, according to a filing dated July 30 that was published by the regulator over the weekend. Arera found that in an undisclosed month of 2022, A2A offered to run some of its gas plants in the day-ahead market at prices above short-run marginal costs, causing the bids to be rejected. That limited power supplies and pushed up market prices. To make this determination, the regulator used a counterfactual analysis that considered how a similar gas plant would bid based on its assumed costs. Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againA2A plans to appeal the decision. In a statement, a spokesperson for the company said the decision is based on an interpretation of regulations that doesn’t adequately take into account the characteristics of liberalized electricity markets and the specific circumstances of the case. While the findings are four years old, they underscore a potentially growing vulnerability in Europe’s power market. With more renewable power generation, the market increasingly swings between times of abundant energy and those of scarcity, sometimes within a single day. That could give operators with flexible assets like gas-fired turbines the ability to push prices even higher during times of stress. Earlier this year, Britain’s energy regulator warned traders not to hoard capacity on cables that link the country to continental Europe. 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