On January 5th, the price of electricity reached an all-time high, surpassing two euros per kilowatt-hour. A sudden increase in demand due to cold weather and limited electricity production caused the significant price hike. The Energy Agency launched an investigation into the situation to determine whether any illegal activity was involved.
The investigation uncovered no evidence of market manipulation, despite suspicions within the energy industry. However, it did reveal that maintenance on power plants such as Fortum’s Meri-Pori coal-fired plant had worsened the supply and demand imbalance. While there were questions about whether maintenance coincided with the high-price period, explanations provided showed that it was legitimate.
Additionally, electricity forecasts made by companies turned out to be inaccurate, leading to losses as consumers did not reduce their consumption to match the high prices. The Energy Agency determined that unexpected high prices were a result of unprecedented demand rather than market manipulation. The investigation highlighted the challenges in predicting consumer behavior and adjusting production accordingly.
In conclusion, after investigating the electricity market, the Energy Agency found no evidence of wrongdoing on behalf of energy companies. Instead, it pointed out a combination of factors such as weather conditions, maintenance schedules and consumer responses as contributing to the price surge. This event will likely inform future forecasting and operational decisions in the energy sector.
