- Theodor Livinschi
EN| All that glitters is not gold: Are the doubtful en-gross dumping prices available for consumers?
Articol disponibil si in romana: https://www.partnerg-i.com/post/ro-nu-tot-ce-zboara-se-mananca-au-consumatorii-acces-la-preturile-en-gross-indoielnice-de-dumping.
As any other market, also the Romanian power en-gross transaction prices (blue bullets) are determined by best bid prices (red lines) and best ask prices (green lines). Indeed, not all the local markets operated by OPCOM are showing and using in the transactional process also the two bid prices. However, considering the desired transparent way of price formation, we might consider that most of the strike (transaction) prices values should be positioned within the bid-ask prices value spead (turquoise hachure). Even in the cases where this is not happening, a normal difference between the transaction price and the best bid one should not be high.
The reality of the local market is showing doubtful situations where dumping transaction prices are distorting the market and confusing the participants, also consumers who are looking for benchmarks or for indexes in their efforts to implement the procurement of global power supply products (e.g. tranches, clicks).
Take a look at the blue bullets outside the turquoise hachure: these are transaction prices far below the bid-ask prices spead, respectively considerably below the prices that market players are trying to buy power at. Such recent transactions are recording this kind of difference of over lei 25/MWh.
These anomalies make our company want even more to wisely bring energy supply future to consumers by locally approaching global trends. The apparent lack of transparency and the high volatility emphasize the need of proffesional energy consultancy, but they are making us and industrial consumers wonder:
○ Are all the other market players supporting us to develop the local market to global standards?
○ Is the entire local supply market ready to professionally answer to global energy supply products requests?
○ Does the local business environment need additional barriers, considering the already existing lack of competitiveness due to high total power prices?