Budget support not needed for November electricity subsidies

The state budget’s participation in monthly electricity subsidies is being further reduced, freeing funds for intervention to lower auto diesel and heating fuel price levels. Budget money for October’s electricity subsidies totaled 100 million euros, but this figure is likely to drop considerably or even be eliminated for November.

The recovery of electricity producer windfall earnings, along with CO2 emission right auction revenues are expected to suffice for the government’s electricity subsidies to be offered to households and businesses in November.

If market conditions do not change drastically over the next few days, retail electricity price levels for November, to be announced by suppliers this Thursday – by law – are expected to be significantly lower compared to October prices.

Over the past week, energy exchange electricity prices, on a downward trajectory more recently, averaged 257 euros per MWh. The October average is currently at 270 euros per MWh, a 34 percent drop from September’s average of 410 euros per MWh.

Wholesale electricity prices seem likely to fall further. For the first time in months, wholesale electricity prices are below 200 euros per MWh, dropping to 166 euros per MWh yesterday.