The drop in the price of electricity already occurred on Monday. Although the price soared above the mentioned thousand euros in the morning, in the end trading for the German market ended at a significantly lower price – 760 euros (CZK 18,680). For the Czech market, it was even one euro less.
On Tuesday morning, the fall continued until the price reached 610 euros per MWh, which is another drop of about a quarter. In the case of the Czech Republic, which is governed by the Power Exchange Central Europe (PXE), the price even dropped to 550 euros per MWh.
In addition, the price of gas also falls. On Monday, one MWh was sold for 272 euros (6,680 CZK) on the exchange in Rotterdam, which is decisive for the European market. On Tuesday morning, the price was already 20 euros lower.
The energy market in Europe is frozen and we need to fix it, Síkela said
Prices have been extremely volatile in recent days as trading volume is low and there is a lot of uncertainty in the market. Russia’s Gazprom plans to close the Nord Stream gas pipeline to Germany for three days starting August 31 for maintenance.
European Commission President Ursula von der Leyen said on Monday that the EU is seeking to create an instrument that would break the link between gas and electricity prices. She also added that the union must urgently take steps to solve the skyrocketing prices.
According to Czech Minister of Industry and Trade Jozef Síkela, the union must separate gas prices from electricity prices. Síkela, as the representative of the country presiding over the EU Council, convened an extraordinary meeting of ministers responsible for energy on September 9. A proposal to determine the maximum price of gas for the production of electricity is to be discussed.
Spain will propose that the entire EU take over the gas cap for electricity production
The newspaper El País wrote on Tuesday that Spain is preparing to propose at a meeting of EU energy ministers on September 9 that its system of capping electricity prices be extended to the entire union. The system has been in effect in Spain and neighboring Portugal since mid-July and, according to initial results, has led to a slowdown in price growth for end consumers. Spanish Minister Teresa Riberová also wants to propose limiting the prices of emission allowances.