A recent rise in the Dutch TTF index, a European gas benchmark, as a result of the Middle East crisis and a rupture on the Baltic-connector undersea gas pipeline between Finland and Estonia, which has raised suspicions of Russian involvement, will result in significantly higher November gas delivery contracts, which, in turn, will push up domestic wholesale electricity prices, market officials have projected.
Wholesale electricity prices are seen rising between 15 and 20 percent next month, which suppliers would relay to consumers.
Electricity suppliers are expected to announce monthly nominal tariffs – not including subsidies – of at least 18 cents per KWh for November.
The country’s electricity suppliers, under current law, are required to announce price levels for every forthcoming month by the 20th of each preceding month. This requirement will be terminated at the end of the year, when emergency energy-crisis measures are to be lifted.
The energy ministry is currently finalizing a plan that will introduce – as of January, for 12 months – a single variable tariff formula for all electricity suppliers, who will apply it and then set respective tariff levels depending on their profit-margin strategies.
The plan’s objective being to intensify competition and subdue prices, while also offering consumers price-comparing clarity.
All electricity consumers will be automatically transferred to the new single variable tariff as of January 1, unless they opt, prior to this date, for any other supply deals offered by suppliers.