ENLatvia was the last from three Baltic States taking a part in the NPS. NPS is one of the world’s largest power exchanges trading in physical energy and financial products and other mitigating measures provided by Transmission System Operators as well. Therefore, transition from one market model to another was not so smooth and encountered significant volatility of electricity prices at least in Lithuanian and Latvian price zones. The investigation of electricity market model development in the Baltic States shows the main possible reasons why the transition period turned into financial problems.