Meeting with the Labour Party’s Political Group in the Seimas on Wednesday, the minister said that today was “the worst day in the history of Lithuania’s power market” as the average price of electricity in the Lithuanian bidding area of the Nord Pool power market stood at EUR 823 per megawatt-hour (MWh).
The minister told reporters that the price could have been lower but the operator of the power market refused electricity produced by the very powerful generator in Elektrėnai. According to the minister, when a vast amount of electricity is supplied to the market for a low price, the offer becomes more expensive than the market price because of an algorithm that is applied.
Kreivys said the National Energy Regulatory Council (VERT) was asked to examine the situation in cooperation with the Nord Pool regulator – the European Union Agency for the Cooperation of Energy Regulators (ACER).
The minister noted that the issue was raised with the ACER in the past, but it refused to change the algorithm. Yet he hopes this would be done now so the algorithm would be more favourable to the Baltic States.
According to the minister, Lithuania’s reserve electricity generation block, a combined cycle block managed by Ignitis gamyba, constantly participates in the power market and offers electricity, but its proposals are not always accepted because of either vast amount of electricity or high price.
The minister added that high prices were also influenced by hot weather as electricity transmission with Latvia and Estonia had to be limited.
