This was a common response to plans by the Norwegian government to introduce a mechanism that will allow it to cut exports if hydropower reservoirs levels run to critically low levels.
“While we understand the need to ensure security of supply, we are at the same time deeply concerned that the proposed capacity reduction seems to disregard the benefits of keeping the borders open and seems not to acknowledge that it is through a well-functioning market that electricity security of supply is ensured in the most efficient way,” said the TSOs.
“If export restrictions were to be allowed under the current European electricity regulation, we fear that such a step could inspire other countries to consider similar restrictions and thus causing a much bigger negative effect on both the Nordic and the European electricity markets”, they added.
Norwegian TSO Statnett and power producer Statkraft voiced similar concerns at a political event in Arendal, Norway, earlier on Thursday.
The Norwegian government has yet to identify and publish the criteria for applying export restrictions and is still waiting for guidance from the regulator RME. Oslo is under strong pressure from some opposition parties to introduce measures after prices in the south of the country have risen to record highs of around EUR 500/MWh, more than ten times higher than normal.