BAKU, Azerbaijan, Sept.17
By Leman Zeynalova – Trend:
The European Commission is aware of the discussions in different EU member states about the recent wholesale electricity price fluctuations and is monitoring the situation closely across the EU, a Commission spokesperson told Trend.
Europe has faced a four-fold increase in gas prices which also impacted the electricity market.
In Germany, the cost of wholesale electricity supplies for 2022 reached 90 euros per megawatt per hour, almost double the prices at the beginning of the year. In the UK, the cost of purchasing electricity from power plants reaches £ 4,000 per megawatt per hour.
“During the pandemic, wholesale electricity prices were at record lows, so some increases in times of recovery were expected. The high prices that have been observed are the result of a combination of factors largely driven by a significant increase in global gas demand due to the economic recovery, and, to a lesser extent, an increased price of carbon under the EU ETS. This is combined with high seasonal demand and weather conditions. Throughout this period, renewables have been producing electricity at the lowest cost and the cost of producing electricity from renewables has remained stable,” said the Commission representative.
The spokesperson noted that consumers are at the centre of the EU’s energy policy and it is necessary to ensure in particular that vulnerable consumers are protected. “EU legislation allows member states to apply safeguards, such as public interventions in price setting for supply of electricity to energy poor or vulnerable household customers, under certain conditions.”
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