09.04.2013

Nordic spot hits year-high as Eidsiva withdraws capacity

(Montel) The Nordic system price hit a new year high at EUR 58.54/MWh as Norwegian utility Eidsiva held back 684 MW in Monday’s spot bid due to strike fears.

On Saturday, Norwegian utility Eidsiva informed the market that 684 MW of production capacity in eastern Norway (NO1) would not participate in the spot bid for Monday due to concerns over strike action.

Norway’s trade unions (LO) and employer organisation (NHO) reached agreement at 03.00 CET on Monday and so avoided a strike

As Eidsiva would have been the only utility affected by the strike, the company did not offer 684 MW of production capacity to Monday’s spot market, Ståle Granberg at Eidsiva, told Montel Monday.

“It is probable that the reduced capacity has had a price effect,” he said.

The 684 MW capacity that was removed from Monday’s spot market was the sum of the company’s production potentially affected by the strike.

However, had there not been concerns over industrial action, it was unlikely that Eidsiva would have offered as much as 684 MW to the spot market due to low reservoir levels and limited water flow in rivers, Granberg added.

Eidsiva will participate in Tuesday’s spot bid as normal, Granberg said.

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