Industry SOS for energy costs

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Of Thanks to Floudopoulos

At a time when the energy stock market is breaking one record after another in terms of electricity prices, the industry emits SOS as it is unable to absorb the increased energy costs.

It is characteristic that yesterday and today in the energy stock market the average price was over 240 euros / MWh with the maximum price even exceeding 300 euros / MWh.

To these increased costs are added other charges such as for example the balancing market costs, which for the month of October amounted to 17.4 euros / MWh.

The cost of the balancing market is added to the cost of the next day market (204,403 euros / MWh in October) raising the total wholesale cost to 221,219 euros / MWh.

Price increases

The bulletin of developments in the IOBE industry also records a significant increase in the cost of electricity. Specifically, as mentioned in the IOBE bulletin, the wholesale base load price increased in Greece in September by 7.2% compared to August.

The price of electricity in Greece in September (136.8 euros / MWh) was at similar levels to other European markets and 59% higher than the price of the NordPool system (86 euros / MWh).

At the same time, the price of natural gas in Greece followed the upward trends of key European markets, but remained at lower levels. In the second quarter of 2021 the average price of natural gas imports in Greece was 255 lower than the average spot price in the markets of the Netherlands and Germany.

In terms of CO2 emission allowances in October there was a slight decline, after a strong upward trend (+ 145%) in the previous 11 months. Thus, last month the average price of CO2 emission allowances decreased by 3.3% compared to the previous month and amounted to 59.52 euros / ton of CO2.

Natural gas

It is noted that the reference of IOBE to the prices of natural gas refers to the 2nd quarter and not to the last months during which the prices have increased significantly and are above the European average and certainly more expensive in relation to the neighboring markets.

Specifically, the November gas supply price based on the TTF is ~ 90 € / MWh while the regulatory gas charges for a small industry do not exceed ~ 10 € / MWh.

The average price of TTF front month for 2021 is projected at a little less than 40 € / MWh while the average price of 2020 did not exceed 10 € / MWh. Respectively in Turkey the final supply price of natural gas is set at 28 euros / MWh while in Bulgaria at 48 euros / MWh.

ΕΤΜΕΑΡ

At the same time, the industry is informed with intense concern about the government’s intentions for changes in the ETMEAR (Special Emission Reduction Fee) and its conversion into a competitive charge. Industry circles emphasize the vertical opposition of energy-intensive companies to this perspective.

This is because such a change would mean that industries could not be subsidized with reduced charges, as is now the case for ETMEAR as long as it remains a regulated charge.

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Source From: Capital

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