Bundesnetzagentur imposes fines for failure to publish inside information
Year of issue 2024
Date of issue 2024.06.17
The Bundesnetzagentur has imposed a fine of €75,000 on the gas transmission system operator GASCADE Gastransport GmbH for breaching its obligation to publish inside information.
GASCADE published erroneous Nord Stream 2 figures
During commissioning tests in August 2021 the company encountered IT problems that led to the publication of incorrect values for the gas flows for the Lubmin 2 network point. At that time the Lubmin 2 network point could only be accessed through the Nord Stream 2 pipeline, so the publication of figures unequal to zero suggested its imminent commissioning.
This happened at a time when the Nord Stream 2 pipeline was near completion although commissioning was not foreseeable due to the fact that it was not yet certified in technical or regulatory terms.
The market was keeping a close watch on the completion process and the related discussions concerning certification with a great deal of suspense, which led to increased speculation about the final commissioning date of the Nord Stream 2 pipeline. The publication of the erroneous figures in August 2021 and the impression it left that the pipeline had been placed into operation led to a short-term but nevertheless massive drop in prices by up to €4.00/MWh.
Company saw no need to make a clarifying statement to the market
The impact of the erroneous publications did not go unnoticed by GASCADE.
The corrected figures were published shortly after 6pm on 18 August 2021, but no clarification message was published beforehand in the form of an Urgent Market Message (UMM) on one of the dedicated Inside Information Platforms (IIPs). The company indicated that they did not consider a UMM necessary since it was not presumed that the market would consider the values to be genuine. However, the drop in prices and various inquiries by the press shortly after the erroneous figures were published demonstrate in the eyes of the Bundesnetzagentur the relevance of the information for prices.
The amount of the fine is not yet final and absolute. The Higher Regional Court of Düsseldorf will decide on any appeals.
Inside information publication requirement
Regulation (EU) 1227/2011 (REMIT) requires market participants to publish inside information effectively and without undue delay. Inside information is precise information that is not publicly known and relates to one or more wholesale energy products that, when disclosed, may potentially have a (significant) impact on market prices. However, such information must be published on a dedicated platform no later than one hour after the relevant event has occurred and thus be made available to the entire market. The Bundesnetzagentur has published an information sheet on the effective and timely publication of inside information so that market participants are aware of their requirements. The information sheet is available (in German) through the following link: www.remit.bundesnetzagentur.de/8328.