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