It seems that the electricity market is entering a period of normalization with the average price of electricity in the wholesale market in September falling to 112.35 euros per megawatt hour (MWh), significantly lower than 129.83 euros/MWh in August and 135, 54 euros/MWh in July. In fact, in the past seven days, the average market clearing price on the Hellenic Energy Exchange (HEXE) had fallen below the “psychological” limit of 100 euros/MWh and in particular stood at 93.89 euros/MWh, recording a 17-week low.
According to an analysis by the Energy Institute of Southeast Europe (IENE), the Greek system in the last week became more import-oriented, “with net imports hitting a 15-week high and exerting downward pressure on wholesale market prices.”
The image of the electricity market in September is expected to have a reflection in the electricity retail trade as well, with the interest of consumers focusing today on the announcements of the electricity providers, as has been the case every first of the month, since the beginning of the year.
Electricity bills
The signals are that the majority of supply companies will keep the kilowatt hour (kWh) stable while PPC will probably move downwards. From the commercial policy primarily of PPC, which is also the biggest “player” in the market (with 54.27%) will also depend on whether the policy of subsidizing low voltage tariffs will continue in October as well (it was at 1.4 minutes /KWh in September and at 1.6 minutes/ KWh in August for consumptions up to 500 kWh). However, already the two largest private providers, Heron and Protergia, have announced that they are “freezing” prices for the fourth month, absorbing the strong market fluctuations.
Intervention in the Commission
In any case, the tendency to normalize prices does not reassure the energy staff of the government, especially after the escalation of tension in the Middle East, which together with the energy ministers of Romania and Bulgaria sent a joint letter to the Commission last Friday requesting the adoption measures to address the sharp rise in prices in the wholesale markets of South-East Europe pointing out that price volatility in the region has put significant pressure on countries’ economies, threatening both energy security and market stability.
That is why they are asking for short-term measures (such as the taxation of the surplus income of electricity producers and traders) but also for the long-term, such as the development of interconnections in the region of Southeast Europe. The letter of the three ministers was preceded by an intervention by Prime Minister Kyriakos Mitsotakis, who in his letter to the President of the European Commission Mrs. Ursula von der Leyen asked for a European solution to the distortions of the electricity market that lead to large discrepancies in the price of electricity between the countries of the European Union.
The wholesale market
In September, Greece was the 7th most expensive market in Europe, with Romania following in 9th place (average price 109.48 euros/MWh) and Bulgaria in 11th (106.94 euros/MWh). At the bottom of the list are the Nordic countries and France with average September prices ranging from 15.23 euros/MWh in Sweden to 56.03 euros/MWh in Finland.
However, in Greece, the debate now revolves around the need for bold market reform, with the emphasis on fixed tariffs, as is the case in most Western European energy markets, where long-term fixed contracts cover around 75% of consumers.
Thus, the competition is expected to turn to the “blue” tariffs in Greece in the next period as well. After all, as market players say, the obligation of suppliers to have the special “green” floating tariffs expires at the end of the year.
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