Monday , April 12 2021

Last year, the price of electricity for households fell by 1.1%; what to expect in the future?

The year 2020 ended with a fall in the price of electricity for households by 1.1%, and for legal users with an increase of 1.7% compared to 2019, according to the data of the Public Utility Commission (PUC).


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However, there is still a high level of interest among households in concluding contracts for both fixed and exchange prices, with a reduced share of universal service, the PUC points out.

Last year, the price of electricity among households reached 56.92 EUR / MWh, but for legal users 47.43 EUR / MWh. The situation on the Nord Pool has a significant impact on the price that users will pay. From October last year to February this year, the price on the stock exchange rose to 59.15 EUR / MWh. The equivalent price was last recorded in August 2018 – 59.05 EUR / MWh.

The growth of electricity prices at the beginning of this year was significantly influenced by high consumption in Scandinavia and the Baltic states. In the first two months of this year, consumption was higher by 9.8% compared to last year, taking into account the cold weather. This situation has been exacerbated by capacity congestion in Scandinavia and rising CO2 permit prices.

“With the beginning of the flood season and warmer weather, the price of electricity is expected to stabilize and even fall. In March, the price will jump as sharply as in February, when the price of electricity in some countries reached more than 200 EUR / MWh, more they were not noticed “, explains JKP I don’t want to.

JKP data show that in December last year there were 134 thousand. or 14.5% of households paid for electricity on the stock exchange, while at a fixed price of 531 thousand. or 57.6% of households. Among legal users, 44.3% chose the stock exchange price, but 55.7% chose the fixed price.

“Users who chose the foreign exchange price, the possibility of saving at the end of last year and the beginning of this year decreased significantly. However, this year the average foreign exchange price in March fell to 43.55 EUR / MVh. On Easter night, there was a temporary negative exchange price “to a positive trend for users to save on stock prices,” says Negribs.

The extent to which this price increase will be reflected in the monthly electricity bill depends on the type of contract concluded. In the case of a stock exchange contract, the change is reflected immediately, while in the case of a fixed price contract the price will change at the time of the contract change and will depend on current price forecasts.

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