Updated: Results on Bulgarian exchange IBEX ‘unrealistic’ – traders

Irina Peltegova

19-Jan-2016

Bulgaria’s new day-ahead electricity exchange IBEX produced extremely low prices on its first day of operation on Tuesday, leaving traders questioning the legitimacy of the published figures and labelling them “unrealistic”.

Day-ahead Baseload for delivery on Wednesday closed at Bulgarian lev (Lv) 44.06/MWh (€22.50/MWh) – well below the €51.74/MWh price of the more liquid Hungarian exchange HUPX, which acts as a reference price for the region.

The price for peaks was identical, and off-peaks was almost identical to the baseload figure.

Traders agreed the prices did not seem realistic when looking at fundamentals and prices in surrounding markets.

Currently the region is experiencing a cold snap with heating demand at a peak.

“Everyone [on the market] is asking whether the results are real and what are the reasons behind them,” one of them said. “Maybe someone mixed the bids with the offers.”

An IBEX spokeswoman said the results were official and there was no technical error.

Two traders suggested the low price may have been due to a lack of buyers and one seller with big volumes.

The three state-owned producers – NEK, Kozloduy and Maritsa East 2 – are obliged to offer certain amounts each day in order to create liquidity.

A fourth trader said the result was not that surprising, considering it was the first session and the market would need to get used to the new trading platform.

“It’s [early] days. It will take time until the market develops,” he said. irina.peltegova@icis.com

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