The EU is preparing changes and the markets are reacting, electricity has become cheaper by more than half

The EU is preparing changes and the markets are reacting, electricity has become cheaper by more than half
The EU is preparing changes and the markets are reacting, electricity has become cheaper by more than half

During today’s trading, the price of electricity for the German market fell to 486 euros (roughly 11,900 CZK) per megawatt hour (MWh), while on Monday it exceeded 1,000 euros per MWh for the first time. This is reported by the Bloomberg agency.

According to analysts, the expected steps of the European Union to lower energy prices are behind the decline. Despite this drop, the price of electricity for the German market is still around ten times the seasonal average of the last ten years.

The EU is now considering various measures in an attempt to limit the growth of energy costs, which has negative effects on the EU economy. Expensive energy is already leading to production cuts in a number of industries, such as steel and fertilizer production.

“The expected EU intervention in the market is seen as very negative for prices, although there is still a lot of uncertainty about what steps the EU will take and exactly what they will look like,” analysts at Energi Danmark said.

The deputy head of the Directorate for Energy of the European Commission (EC), Mechthild Wörsdörfer, said today that the measures could include capping energy prices or taxing the extraordinary profits of companies from the energy sector. According to her, EC President Ursula von der Leyen will present a plan for a possible course of action on September 14.

Energy prices have increased significantly this year in connection with the attack of Russian troops on Ukraine. The increase in prices is mainly due to the restriction of Russian gas supplies.

The price of the key gas futures contract for October delivery in the Title Transfer Facility (TTF) virtual trading hub in the Netherlands climbed to close to €350 per MWh on Friday. It has fallen significantly since then and this afternoon was in the vicinity of €244 per MWh. However, it still remains many times higher than a year ago, when it was below 30 euros per MWh.

The article is in Czech

Tags: preparing markets reacting electricity cheaper

PREV Federer will say goodbye to tennis at the Laver Cup, he will play with Nadal in doubles
NEXT 80 percent of businesses do not have fixed energy prices for next year