Germany’s grid regulator, BNetzA, is investigating a significant power price spike that occurred during a “Dunkelflaute” event in mid-December, with the possibility of market manipulation being a key concern. Klaus Müller, the head of BNetzA, took to social media to assure the public that the agency is treating the price surge “very seriously” and is actively assessing allegations of market manipulation.
Market manipulation could occur if companies intentionally withhold available backup plant capacity to drive up prices. The price spike, which saw intraday power prices surge above 900 euros per megawatt hour (MWh), was triggered during a Dunkelflaute event—an episode when both wind and solar power generation were exceptionally low. In addition, the unavailability of fossil fuel plants contributed to the price surge not just in Germany, but across other European countries as well.
BNetzA clarified that while the power supply security was not at risk, operators failed to deploy backup power plants even when the wholesale price exceeded 300 euros per MWh. The agency’s analysis pointed out that price peaks during Dunkelflaute events are typically expected, but it is investigating whether collusion played a role in the mid-December price hike.
“If there are related leads, we will initiate further investigations,” BNetzA added, indicating that a more thorough inquiry may follow.
Most consumers were shielded from the price surge due to long-term supply contracts with fixed rates. However, industrial consumers with flexible contracts could feel the impact of such price spikes.
Looking ahead, BNetzA acknowledged that a repeat of the price surge in the coming weeks could not be ruled out, even though reduced demand over the Christmas holidays may help stabilize the market. The regulator stressed the importance of continued investment in steerable and flexible power plants, calling for regulatory measures to ensure the availability of backup capacity in the future.
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