Nord Pool Spot AS has received a recommendation from Market Surveillance based on their investigation regarding a matter where DONG Energy Power A/S has traded power in the Elbas market while holding inside information regarding reduction of production capacity on Asnæsværket block 5.
Pursuant to Market Conduct Rules section 2.3 participants may not “place, change or remove bids or actively enter into transactions in the market when holding inside information”. The investigations by Market Surveillance document that DONG Energy Power A/S has carried out insider trading which constitutes a breach of Market Conduct Rules section 2.3.
Due to production problems DONG Energy Power A/S had to switch fuelling on the Asnæsværket block 5 which resulted in an estimated reduced capacity of 160 MW. During the period between failure time and publishing of UMM, DONG Energy Power A/S placed 280 MW purchase orders in Elbas leading to immediate trades of the same volume.
The insider trading seems to have been executed precisely to remedy the situation caused by the event triggering the insider trading prohibition. As a mitigating factor Nord Pool Spot has taken into account that the profit potential was limited, as the overall energy volume traded was only 280 MWh. DONG Energy Power A/S has acknowledged that the insider trading was the result of a regrettable mistake and emphasizes that it happened against their written instructions and existing procedures.
In accordance with the recommendation given by Market Surveillance Nord Pool Spot has decided to issue a written warning to DONG Energy Power A/S.
Lysaker 9 September 2010 11:55 CET
For further information, please contact Nord Pool Spot:
Siw Hauge, director communications, phone +47 90 61 59 92
Camilla Berg, head of market surveillance, phone +47 67 10 91 31
Christian Giswold, advisor market surveillance, phone + 47 67 10 91 56