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(Bloomberg) — Finland plans to fine a Swedish power trader after an erroneous bid last year caused prices to plunge deep below zero for an entire day.
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Kinect Energy Sweden AB mistakenly offered to sell the equivalent of about half of the country’s total consumption in an hourly auction and later had to trade in the market to correct its position. As some consumers received free power, authorities urged the public to keep usage at normal levels to safeguard grid stability.
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The Energy Authority will propose to the Market Court that Kinect will be ordered to pay an administrative fine, according to a statement on Monday. The unit of World Kinect Corp. “acted negligently by submitting an erroneous order to the day-ahead electricity market” on Nov. 23, 2023, the authority said.
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As a result, the average price in the Finnish bidding zone plunged to minus €203.4 ($239) per megawatt-hour that day, including 10 hours at the minimum level of minus €500. The error also affected markets beyond Finland, as grids in the region are closely connected.
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The maximum fine that could be imposed is 10% of revenue, according to Antti Paananen, deputy director general for electricity and gas markets at the Energy Authority. The authority plans to hear Kinect before determining the size of the proposed penalty, he said.
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Kinect couldn’t be reached for comment. Entelios, a unit of A Energi AS, agreed to buy Kinect’s Nordic portfolio earlier this year, but the transaction covers customer contracts only and not business operations, a spokesperson said by phone.
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