Wholesale electricity prices still high despite gas price drop

Natural gas prices fell as low as 65 euros per MWh yesterday, ending the day at 66.809 euros per MWh. Such levels, last recorded prior to Russia’s invasion of Ukraine, are being shaped by subdued gas demand, the result of mild winter weather, and high yields delivered by the RES sector.

The decline in natural gas prices has stabilized wholesale electricity prices, down to levels below 100 euros per MWh around Europe today.

Germany has registered a wholesale electricity price of 66.64 euros per MWh for today, France is at 78.81 euros per MWh, Belgium’s price is 77.99 euros per MWh, while Spain and Portugal are at 88.48 euros per MWh.

In Greece, applying a wholesale electricity pricing formula based on each preceding month’s natural gas cost average, wholesale electricity prices have remained elevated, at 211.71 euros per MWh, followed by Italy, at 195.32 euros per MWh, Malta, at 194.99 euros per MWh, and Bulgaria and Romania, both at 193.56 euros per MWh.

The average January price, so far, for wholesale electricity in Europe is highest in Greece. It is currently at 220.3 euros per MWh, followed by Italy, at 179.04 euros per MWh.

Domestically, lower wholesale electricity prices have yet to impact retail prices, already announced by suppliers from the 20th of the previous month, as required by a new market rule.

However, the drop in wholesale gas prices is gradually making impact on retail gas prices, currently declining.