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Because in one day Greece became the most expensive electricity market in Europe

By Haris Fludopoulos

The Greek electricity market for today emerges as the most expensive in Europe as the price in the previous day’s market stood at 697.41 euros/MWh. And yet just yesterday Greece was in the European average, as with 671.14 euros/MWh it was in 14th place in the ranking of European electricity markets. What happened and in just one day the Greek market became the most expensive in Europe?

Quite simply, the significant drop in the international price of natural gas intervened, which led the markets of Europe to a significant reduction in prices: from the 339 euros/MWh that natural gas cost last Friday, yesterday the price of the fuel dropped to 252 euros /MWh. So in all European markets where natural gas prices are directly reflected in electricity prices, we had a significant decline. In markets such as Hungary, Serbia, France, Romania, Croatia, Slovenia, Austria and Switzerland, which yesterday had electricity prices above 700 euros/MWh, due to the reduction in the price of gas, a decline was recorded from 7 up to 17% within one day resulting in electricity prices moving significantly below 700 euros/MWh up to 651 euros/MWh (France).

To the question why electricity prices do not decrease correspondingly in Greece (compared to yesterday, Greece together with Bulgaria are the only markets with an increase) the answer is simple: the pricing of natural gas in our country is based on the average of the previous month and not based on the current day’s market price of TTF. This has the result that when natural gas prices rise, Greece shows a better electricity price than the rest of Europe. On the contrary, when natural gas prices fall, this fall is slow to be reflected in electricity prices, which remain high for more days than in the rest of Europe’s markets.

This heterochronism practically means that as long as the reduction in natural gas prices continues, the Greek electricity market will be in the first places of accuracy among the countries of Europe.

Source: Capital

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