Ignitis is engaging the market for consultations on conditions for purchasing electricity for public supply customers

Ignitis, a smart energy solutions company that ensures public supply of electricity to private customers, is analysing options of fixing a part of the price for the electricity to be supplied to private customers who use the public supply services in order to mitigate the impact of the risks related to growing electricity prices. Before the launch of the electricity auction, Ignitis is inviting the participants of the electricity market to submit comments and proposals on the conditions for purchasing a part of the electricity required for public supply of electricity to private customers. The feedback forms are open from 2 October till 6 October via Mercell or CPP IS platforms.

The purpose of the market consultation is to prepare for the upcoming purchase of electricity for public supply customers as best as possible. In other words, the focus is on preparing clear procurement documents that can help ensure competitive electricity prices, also on evaluating actual capabilities of the market to supply the necessary products.

Based on the company's assessment, by diversifying the public supply portfolio, the stability of regulated electricity prices could be ensured at least in part, i.e., it would be possible to minimise the risks related to electricity price fluctuations. This would be achieved by concluding physical power purchase agreements (excluding the balancing service) or trading derivatives (where there is no direct supply of electricity, but the monthly price of the transaction for a given period is compared with the monthly price in the Nord Pool power market and settled based on the difference between the two prices).