Electricity and natural gas are currently very expensive. Reason: the commodity boom and the peak in CO2 emission rights. The consumer threatens to face an expensive autumn.
–
The price for electricity to be delivered within a year – a benchmark in the wholesale market – peaked this week at 72.63 euros/MWh. It is more than ten years ago (2008) that so much was paid for delivery in the next year. Matthias Detremmerie, electricity trader for energy supplier Elindus, talks about ‘very expensive’ prices.
Increased raw material and CO2 prices
These expensive prices are the result of the enormously increased raw material prices (natural gas, coal), and in particular the increased CO2 prices. Electricity producers must submit emission allowances to compensate for their polluting emissions. In this CO2 market, scarcity is causing prices to rise, especially since large parties are speculating with the rights.
This can also be seen in the short-term market. The price to supply electricity on Saturday is more than 81 euros/MWh, while it is the weekend, a holiday, and there is still quite a bit of electricity production from the sun. ‘Excessively much for a Saturday’, says Detremmerie. The CO2 price and the influence of high prices abroad also play a role here.
Natural gas and LNG are also more expensive
Elsewhere in Europe, electricity prices are also peaking. In the Netherlands, France and Germany the prices themselves are slightly higher than in Belgium, because the fuel mix in those countries has to be compensated with even more CO2 rights.
Not only electricity is expensive. The price for natural gas (delivery within a year) has risen to almost 36 euros/MWh: prices that have hardly been equaled in the last ten years. Natural gas is in high demand from electricity producers because coal is even more expensive. But expensive shipping prices for LNG also play a role.
The peaking electricity and gas prices eventually also end up on the energy bill. Especially those who have a variable contract are likely to feel this in their wallet.
– .
