(Bloomberg) -- Germany’s Federal Network Agency said it will conclude its investigation into alleged market abuse in connection with recent power price spikes early next year.
“The level of the price peaks was of course extraordinary,” Klaus Müller, the head of Germany’s grid regulator, said in an interview. Extended periods of low wind and sunshine — known as “Dunkelflauten” — are quite common, he added.
Last week, German power prices at one point rose to around ten times their average day-ahead levels, triggered by low wind generation and cold weather. The country usually compensates for such shortfalls by boosting power imports from its neighbors and ramping up fossil fuel generation, but a substantial amount of capacity from gas and coal plants was unavailable that day.
The high prices caused numerous industrial companies to cut their electricity consumption, said Christian Hövelhaus, Chief Executive Officer of Esforin SE, a company that provides flexible power to manufacturers.
German newspapers, including Frankfurt Allgemeine Zeitung, raised questions about whether the withholding of capacity was deliberate, which would constitute illegal market manipulation. Energy companies responded that allegations of deliberate withholding are unfounded.
“The investigation was triggered by the question of how the unusually high prices could have come about,” Müller said. “The investigation will be concluded early next year.”
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