Sliding electricity prices on the energy exchange, since mid-January, and the continuing drop in natural gas prices at the TTF index are creating favorable conditions for lower retail electricity prices.
A first retail market sign of these improved conditions is expected tomorrow, when suppliers post their February prices based on a recently introduced market rule requiring them to announce their prices for each forthcoming month by the 20th of the previous month.
Suppliers are expected to drop their nominal price levels for next month as low as 0.20 to 0.25 euros per KWh, not including anticipated state subsidies.
According to sources, power utility PPC, the dominant market player, is not prepared to drop its retail electricity price so low for next month, but it will offer a significant cut on its January offer.
Once retail electricity prices for February are out, the energy ministry will set subsidies so that finalized retail prices drop to a level of 0.09 euros per KWh.
The day-ahead market’s average price for electricity has set a new low, falling, today, to 58.44 euros per MWh, from 204.40 euros per MWh just days ago. It should be noted that suppliers take into account a broader time period when calculating their prices for each forthcoming month.
The TTF gas index has also plunged in recent weeks to levels of between 55 and 60 euros per MWh, well below levels of 150 euros per MWh in December.