Finland to Fine Power Trader Over Error That Crashed the Market
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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.Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.(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.Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.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.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.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.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.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.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.Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.365 Bloor Street East, Toronto, Ontario, M4W 3L4© 2025 Financial Post, a division of Postmedia Network Inc. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.You can manage saved articles in your account.and save up to 100 articles!You can manage your saved articles in your account and clicking the X located at the bottom right of the article.