Wholesale electricity market prices have made further increases in recent times, driven by rising carbon emission right prices, which have exceeded 50 euros per ton.
Over the past few days, not including Sunday, the wholesale market’s day-ahead price rose well above 60 euros per MWh on energy exchange, reaching as high as over 72 euros per MWh last Thursday.
Besides the impact of increased carbon emission right prices, the energy market is also being pressured by higher gas prices, driven by greater usage of natural gas-fueled power stations being anticipated.
Natural gas prices have risen from 16 to 23 euros per MWh over the past few days.
This increase in wholesale electricity prices is directly impacting the retail electricity market, energy-intensive industrial consumers, both in the medium and high-voltage categories, already feeling the effects.
Given the energy market’s current uncertainty, suppliers are limiting the duration of contracts offered to three months.
The industrial sector is voicing concern about ambiguity ahead and rising energy costs that threaten to severely undermine the competitiveness of producers.
The activation, by suppliers, of carbon emission cost clauses included in agreements have increased industrial electricity prices by as much as 20 euros per MWh in recent times.
Though the industrial sector is compensated for this additional cost, compensation calculations are based on the previous year’s price levels, meaning industrial enterprises will end up covering a large percentage of the recent electricity cost increase.
Based on latest calculations, industrial enterprises will be compensated just 9 euros per MWh for the recent 20 euro per MWh hike.