Power Trader Whose Error Caused Crash Faces $11 Million Fine
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Article content(Bloomberg) — A Swedish power trader behind a major collapse in Finland’s electricity market in 2023 is facing a €9.25 million ($11 million) fine.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentA botched bid by Kinect Energy Sweden AB sent shockwaves through the market about two and a half years ago, halting intraday trading across northern Europe and driving prices deep below zero. Some Finns even enjoyed a full day of free electricity.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentThe company mistakenly offered to sell the equivalent of roughly half of Finland’s total consumption in an hourly auction, and later had to trade in the market to correct its position. Authorities urged the public to keep usage at normal levels to safeguard grid stability.Article contentArticle contentFinland’s Energy Authority said Monday in a statement it has proposed that the country’s Market Court order the World Kinect Corp. unit to pay an administrative fine of €9,254,600. The company was found to have “acted negligently,” breaching rules against market manipulation.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!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.Article contentThe proposed fine amounts to 5.5% of the unit’s 2023 revenue, below the maximum penalty of 10%.Article contentIn its quarterly earnings statement on Friday, World Kinect said it had in late 2023 booked losses totaling $48.8 million from the erroneous bid. It said that “the Finnish Market Court will ultimately determine whether any penalty should be assessed and, if so, the amount.”Article content“We intend to vigorously defend ourselves in any proceeding,” the company said.Article contentKinect’s order in the day-ahead electricity market on Nov. 23, 2023, caused the average price in the Finnish bidding zone to plunge to -€203.4 per megawatt-hour, including 10 hours at the minimum level of -€500. The error also spilled over into neighboring markets, reflecting the region’s tightly interconnected grids.Article content(Updates with World Kinect statement from sixth paragraph.)Article contentTrending Canada doesn't have the leverage over the U.S. it seems to think it has, says trade lawyer Economy Posthaste: Here's what the Bank of Canada will do when it moves on interest rates, says top think tank News Where Canada's condo market is headed: FP Video News An old factory in Welland, Ont., sat derelict for years — until someone discovered it could be worth billions Mining Iran Offers Deal to US to Reopen Strait and Delay Nuclear Talks, Axios Says PMN Business Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation 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. Canada doesn't have the leverage over the U.S. it seems to think it has, says trade lawyer Economy Posthaste: Here's what the Bank of Canada will do when it moves on interest rates, says top think tank News Where Canada's condo market is headed: FP Video News An old factory in Welland, Ont., sat derelict for years — until someone discovered it could be worth billions Mining Iran Offers Deal to US to Reopen Strait and Delay Nuclear Talks, Axios Says PMN Business