In recent weeks, the Baltic energy regulators (NRAs) have observed unusually high and fluctuating offers in the balancing energy market. This has prompted a comprehensive analysis to determine whether the behavior of market participants in submitting offers aligns with the requirements of the Regulation on Wholesale Energy Market Integrity and Transparency (REMIT).

Situations where a market participant fails to offer available production capacity for the wholesale market without justified technical, regulatory, or economic reasons, or offers it at prices significantly exceeding the marginal cost of production, may be considered a violation of REMIT. More generally, REMIT prohibits any behavior that involves market manipulation or attempts to manipulate the market.

As a result, the Baltic NRAs emphasize the need for all market participants to act responsibly in both the frequency reserve capacity and balancing energy markets. The NRAs will continue to monitor the operation and outcomes of these markets closely. If there is reasonable grounds for suspicion, questionable offers may become the subject of investigations by the Baltic Transmission System Operators (TSOs) and NRAs. Following each investigation, if a violation of regulations is identified, the NRAs will impose sanctions in accordance with REMIT and the relevant national legal framework.

Since the launch of the Baltic frequency reserve capacity market on February 5, 2025, the system operators of Estonia, Latvia, and Lithuania have jointly procured reserve capacity services through a unified auction mechanism.

In line with the European Parliament and Council Regulation (EU) No 1227/2011 on REMIT, the Competition Authority, along with the Lithuanian and Latvian energy market regulators, jointly monitors the frequency reserve capacity and balancing energy market.