Electricity import/exportin Baltic electricity market

April 24, 2009

Jaanus Arukaevu

Issues

1. Reminding from last Minifora: Cross-border trading and balancing procedures in Latvia.

2. Transparency: Can traders trust TSO-s?

Import and export activities: LATVIA

• No limitations to import and export

• Currently unequal treatment of Latvenergo and other traders in CB trade:

• Latvenergo has the only open supply agreement over Latvian border, instead of TSO. No other trader has right to do so

• Balancing energy price will be actually set by Latvenergo, not TSO

• Spread of balancing energy has become enormous

• Latvenergo do not have imbalance, other traders have no right to avoid imbalance with the same means

• Current regulation should be changed in order to provide equal access to the network service to all market participants

Present

Future

?

Balancing energy pre-set price for September 2008

NB! imbalance price spread is up to 60,5 EUR/MWh!And TSO can procure it only from Latvenergo!

(1 LV = 1,41 EUR)

Balancing energy pre-set price for September 2008, April 2009

(1 LV = 1,41 EUR)

NB! imbalance price spread 30 EUR/MWh is still high!

Transparency: Can traders trust TSO-s?

*Photo taken in LEO office 2.10.2008 in Vilnius

•TSO-s are leaking.

•How? •Intregrated IT-systems provide kind of information from TSO to “friendly trader”

•Do TSO-s still deliver that kind of sensitive information to power companies on regular bases?•In Estonia?•In Latvia?•In Lithuania?

THANK YOU!