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Publikuoti: 7/30/2019. Atnaujinta: 7/30/2019

NERC found that UAB „Geros dujos“ manipulated the market

National Energy Regulatory Council (NERC) completed investigation on natural gas market participants UAB Geros dujos and UAB Arontera and issued a resolution where it ruled that market participant UAB Geros dujos selling transactions on the Lithuanian natural gas exchange constitutes a breach of REMIT* provisions.

NERC found that UAB Geros dujos transactions carried out on exchange on the first half of 2017 on the last day of each month:
secured the price of the several products published by the exchange, i. e. lowest selling price index (artificial level);
gave false and misleading signals as to the price of wholesale energy products of the exchange for at least 6 retail consumers;
resulted more than 5 000 Eur of unlawful additional revenue to the company.

Above-mentioned market practice by UAB Geros dujos constituted marking the close scheme.

This is the first infringement of its kind ruled in Lithuania. Due to market manipulation and breach of REMIT provisions, NERC may initiate a sanction procedure and UAB Geros dujos could be fined from 579 Eur to 10% annual revenue from the activity for which the regularity was committed in the preceding financial year.

Please note that on 24th of January 2019 due to other breaches of the regulated activities of UAB Geros dujos authorization to carry out natural gas supply activity in Lithuania was terminated.

Resolution and 25th of July 2019 hearing material could be found here.

* Article 5 of Regulation (EU) No 1227/2011 of the European Parliament and of the Council of 25 October 2011 on wholesale energy market integrity and transparency