The de-escalation of wholesale prices is expected to be seen in the electricity tariffs for April that will be announced tomorrow by the suppliers, but without substantial changes for consumers
The reduction in electricity prices on the Energy Exchange during the first half of March is close to 20%, while compared to December the reduction is close to 55%.
The de-escalation of wholesale prices is expected to be seen in invoices of electricity for him April which will be announced tomorrow by the suppliers, without however substantial changes for the consumers as the final prices they pay are shaped by the subsidies throughout the crisis at 15-16 cents per kilowatt hour.
Thus the de-escalation of wholesale prices means that less funds will be needed to subsidize consumption.
According to the data of the Energy Exchange the average price of electricity in March (until last Friday) is 125.73 euros per megawatt hour compared to 156.24 euros in February (a decrease of 19.5%) and 276.89 euros in December (55% reduction).
The de-escalation of prices is due to a number of factors, such as:
-The increased participation of renewable energy sources in the energy mix, which pushes down prices as RES take the most expensive production units out of the market in combination with the relatively low, due to weather conditions, energy demand. It is characteristic that last Monday and Tuesday, with the participation of RES close to 50% in covering the load, the wholesale segment fell below 100 euros per megawatt hour.
-The decline in international natural gas prices, which fell last week to close to 40 euros per megawatt hour, while during the crisis they had exceeded 320 euros.
The mild winter, the securing of the necessary quantities of natural gas for Europe after the interruption of Russian supplies and the maintenance of high stocks in natural gas warehouses at the end of winter are some of the causes of the fall in international prices.
As we head into spring and barring another unexpected development, the attention of markets and governments will turn to ensuring adequacy and, if possible, holding prices down next winter.
Source: Skai
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