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According to him, higher prices for emission allowances will also be reflected in the account for electricity in households, in the time horizon according to the fixation. “I was disappointed by the position of the European Commission, which is completely unresponsive to the fact that the price of allowances is rising too fast and too unpredictable,” Gavor said. According to him, the emission allowance is a tool for influencing the overall wholesale price of electricity.
According to Natland economist Petr Bartona, the key to understanding rising emission allowance prices is Germany. “It simply came to our notice then. A large part of these power plants is to be shut down there next year. The construction of renewable sources is slow, so the production outage was supposed to replace the output of gas power plants, “he said. These have free capacity because they have only been used at peak times so far, as the gas can be started and stopped quickly. “It simply came to our notice then. At such high prices, it is more worthwhile to start coal-fired power plants – despite the high prices for allowances, “he added.
From a European point of view, according to him, the price of allowances is still low, only when it rises, gas electricity will become cheaper than coal electricity, and emissions will be able to fall. “In Glasgow, moreover, it was agreed two weeks ago that emission allowances should be extended worldwide, which again increases the attractiveness of European allowances and their price,” said Bartoň.
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How quickly the increase in allowance prices is reflected in household prices depends on the regime in which the household consumes energy. “A large part has annual markers, large customers have already set for next year, so if there are no unexpected huge increases, the cost of higher prices will be borne by suppliers, not households,” said Bartoň. According to him, households that have not yet switched from discontinued suppliers to longer contracts will feel the price immediately, because they pay the current market price.
The European Emissions Trading Scheme (ETS) is the main tool for reducing greenhouse gas emissions. It sets limits on the total amount of greenhouse gases that can be emitted by sectors within its scope, while allowing companies to obtain or purchase emission allowances that can be traded as needed. As the price of allowances increases, so does the motivation of companies to try to reduce emissions.
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