IESO issues sanction to Citigroup Energy Canada ULC
To help ensure Ontario’s electricity system is reliable and cost-efficient, market participants that are found in breach of the market rules or reliability standards may be subject to enforcement sanctions. In accordance with Chapter 3 of the market rules, the IESO issued to Citigroup Energy Canada ULC (CECU) a non-compliance letter on December 16, 2020 and ordered the adjustment of settlement amounts to recover from CECU a total of $378,254 for breaches of Chapter 7, section 7.5.8A of the market rules. During the period from January 4, 2012 to January 7, 2018, CECU failed to schedule some promised import and/or export energy at the Michigan-Ontario, Minnesota-Ontario and New York-Ontario borders.
When a market participant fails to schedule cross-border energy other than for bona fide and legitimate reasons, they may avoid paying certain settlement amounts and/or may receive unwarranted payments. Failed cross-border trades cause adverse impacts in the IESO-administered markets. For example, avoided payments can result in settlement shortfalls and, in turn, higher costs to consumers. The market rules provide for the adjustment of settlement amounts, including the recovery of avoided settlement amounts and payments received due to cross-border trade failures that are within a market participant’s control. More information on sanctions and other enforcement actions is available on the IESO website.