Electricity for Slovakia became cheaper by up to 40%
Market prices of electricity continue. While a week ago electricity on the Prague Stock Exchange cost a little over 1,000 euros per megawatt hour, today it can be bought for roughly 600 euros per megawatt hour. The price thus fell by approximately 40% in less than a week. According to data published by the Prague stock exchange PXE, electricity to be delivered in Slovakia next year was sold for 603 euros per megawatt hour on Wednesday.
What is behind the decline
Analysts attribute the rapid drop in electricity prices to the statements of representatives of the European Commission and the European Union, who plan to reconstruct the European energy markets next week. They want to shine a light on market speculators.
Market prices of gas are similarly affected. It is currently sold on the TTF market (virtual trade hub Title Transfer Facility in the Netherlands) for almost 231 euros per megawatt hour. A week ago, the value of gas on the aforementioned market reached a record value of roughly 313 euros per megawatt hour.
Tanks are 80% full
The European Union (EU) has filled its reservoirs gas for 80% I will announce the deadline. European Commission President Ursula von der Leyen informed about this at the summit of the Baltic Sea countries on energy security.
“Basically, we have already reached the level we agreed on for this year. However, we know that we will fill the reservoirs even moreVon der Leyen said, according to the official website of the European Commission.
EU countries agreed at the end of June that all reservoirs of earth gas in the 27-member bloc, they should be replenished to at least 80% capacity, as it is necessary to provide the possibility that Russia will further reduce the supply of these raw materials.
The EU is trying to limit Russian energy imports as Moscow continues its military aggression against Ukraine, and to find other sources. The regulation also says that reservoirs gas in the EU they will have to be filled to 90% of capacity before the winter of 2023/2024.
As analysts from the Dáta bez patosu project remind us, “it’s not even the end of August yet, and despite all the bad news, gas storage tanks in Europe are 80% full.” It is about 1/4 of last year’s consumption by industry, power plants, households and institutions,”
At the same time, it is assumed that European households will save gas this winter. There should be no shortage of gas. “Russian gas provided about 40% of European consumption in 2021. The trend of “cutting off” from Russian gas is significant, and the catastrophic news with limited supplies via NS I. and their complete stoppage does not allow Europe to face such problems as presented in the media.” the analysts underline.
Who said, saved
Households that save at least 15% of their consumption in the next year will receive cheaper power electricity in full volume. As it was explained after Wednesday’s meeting of the government of the State Secretary of the Ministry of Economy Karol Galko, households that did not save anything on electricity consumption before the previous year will have cheaper power electricity only up to 85% of consumption, the remaining consumption up to 100% will already be paid at market prices.
Cheaper power electricity, which is half of the final price of electricity, which included Slovenské elektrárne. Next year and the following year, Slovakia’s dominant electricity producer should provide households with more than 6 terawatt-hours of electricity annually at a price of 61 euros per megawatt-hour.
In case gas the Ministry of Economy reckons that Slovakia has at its disposal historical cheap gas. The latter was diluted with the current expensive ones by gas. “Every single supplier would thus be able to supply households next year gas a bit more expensive but not as expensive as it is currently in the markets. This proposal was discussed with market participants and we found agreement,” assessed Galek.
The Ministry of Economy also plans to help entrepreneurs. Companies operating on the Slovak market will be able to request compensation. Their height is currently still unclear. According to Galek, everything will depend on the possibilities of the state budget, or on the willingness of the European Union to provide money for compensation for businesses. According to the Secretary of State, companies will be able to claim compensation so expensively gasor expensive electricity.
The approval of measures to combat expensive energy is postponed for at least a week. According to Galek, four legislative changes need to be adopted. “Legislative changes allow us greater comfort before possible future lawsuits. A few words should be added to the laws. Everything will go through abbreviated legislative proceedings. Subsequently, we will accept the general economic interest in electricity and flows“, concluded Galek.
Source: SITA