Derailment: Electricity prices exceed 400 euros / MWh across Europe – Brussels’s responsibilities are huge

Of Thanks to Floudopoulos

One after another, the records of energy accuracy are broken, as the unprecedented energy crisis that affects the whole of Europe, including our country, continues unabated.

For today, in fact, all the counters are broken in terms of wholesale electricity prices as in all of Europe, with the exception of just four countries, the price of electricity exceeds 400 euros / MWh.

To understand the sizes, it is as if the price of milk from 1 euro has jumped to 10 euros within a year.

More specifically, for today the wholesale prices of electricity across Europe are: France 452.94 euros / MWh, Switzerland 435.51 euros / MWh, Romania 428.24, Austria, Slovenia and Croatia 427.09 euros / MWh, Bulgaria 421 , 59 euros / MWh, Serbia 420.49 euros / MWh, Hungary 420.14 euros / MWh, Germany 416.72 euros / MWh, Greece 415.94 euros / MWh, Slovakia 412.15 euros / MWh. The only countries with prices below 400 euros are Belgium (397.09 euros / MWh), Spain and Portugal (360.02 euros / MWh) and Poland (343.9 euros / MWh).

In the Greek market, as mentioned above today, the average price will be 415.94 euros / MWh, however the maximum price will reach up to 542.5 euros / MWh, the most expensive wholesale price ever recorded in the electricity market.

The new surge in electricity prices finds European consumers, whether they are households or businesses and industries, literally defenseless.

This is because the proposals of countries such as France and Greece to take emergency measures that would lead to a reduction in prices were rejected by the Brussels priesthood.

So we have the paradox, on the one hand, consumers are faced with outrageous increases in their energy costs, and on the other hand, some categories of producers make significant profits, due to the market structure.

Why is this happening; Because according to the operating model of the European market, all producers, regardless of their own costs, are paid based on the cost of the marginal unit, ie the most expensive unit that entered the system. What does this mean in practice?

As gas prices soar, gas producers are offering high prices to the electricity wholesaler, dragging prices down to the levels we see. For example, RES plants, nuclear power plants and even coal plants are overpaid based on gas plant bids.

It is noted that the proposal of Greece and France, along with four other countries, was to have an extraordinary mechanism to limit the profits of overpriced producers, but with Germany predominant, followed by 9 other northern countries, the proposal was rejected.

As for the reasons for the current price spike, this is attributed, in addition to the situation on the gas market, to the fact that 4 nuclear power plants in France have been shut down.

Specifically, in a routine inspection carried out last Thursday, an error was found, as a result of which 2 factories were shut down, which were added to two more that were in scheduled maintenance. Thus, out of the 56 atomic reactors in France, more than a quarter is out of order.

The units that are in maintenance – repair correspond to 13% of the available power in France. As a result, the power deficit in France, combined with increased demand due to winter, is creating a domino effect of price jumps throughout Europe.