The maximum selling price of electricity should be 180 euros per megawatt hour
News RTVS comes from Reuters with information that the maximum selling price of electricity produced by non-gas power plants should be 180 euros per megawatt hour (MWh). For now, however, this results from the working version of the proposal for measures to mitigate the effects of rising energy prices. The final form is presented by the European Commission in Strasbourg today.
“In it, the executive of the European Union also expects to take away 33 percent of excess taxable profits from fossil fuel measurements. The money obtained in this way should be used by the member countries to reduce prices, especially for households and companies at risk,” stated RTVS.
Already last week, the ministers of the EU countries, who are responsible for energy, instructed the commission to, as part of the solution “the crisis situation in the energy market prepared the details for confiscating part of the windfall profits of power plants producing energy from sources cheaper than gas,” writes RTVS.
According to the current working proposal, the price peak will concern solar, wind, lignite and nuclear power plants, which will also include producers of electricity from biomass.
Last week, Richard Sulík presented where, according to him, the price of electricity could climb next year. “He reckoned with a figure of 178.47 euros per megawatt hour, while the price of the tariff for system services (TSS) was questionable. For comparison, in 2022, households pay almost 190 euros for electricity,” stated Pravda newspaper.
However, the scenarios are different. One speaks of a price increase of up to 51%, i.e. to the amount of approximately 287 euros, the second scenario envisages an increase of 72 percent or more.
“The maximum price will be at the same level at about half of the price at which electricity is sold in Europe in August. Last week, mainly due to great satisfaction with gas reserves, the price of this raw material fell below 200 euros per MWh for the first time since the beginning of August. In August, the wholesale price of gas temporarily reached 350 euros per MWh,” supplied by RTVS.
Members of the European Parliament (EP) discussed the EU’s response to price increases with representatives of the EU Council and the European Commission on Tuesday afternoon energies and proposals to protect European households and businesses. Several Slovak MEPs also commented on this topic.
Robert Haj (Smer-SD) from the faction of Socialists and Democrats (S&D) pointed out that all measures must do more good than harm. He claims that people don’t care whether it will be a form of capping prices or compensations, or taxation of unexpected profits of energy companies.
Compensation is pending
“People and businesses want to see these measures. Some governments have already adopted them, the Slovak government has not done much. We are still waiting for a compensation package to help households and smaller businesses survive the coming winter,” he explained.
I do not consider capping gas prices to be perceived only through its “immediate effect” as a long-term solution, because it will limit gas on the market and increase prices.
“We have to take measures that we know will work immediately. They will be accepted for a short period. Capping only Russian gas prices has caused more damage than those dependent on these supplies.” stated. He added that capping all gas coming into the EU will lead to more demand for it and higher prices.
Ivan Štefanec (KDH) from the European People’s Party (EPP) stated that the high prices energies they are the number one topic for companies and citizens.
“It’s driving mainly through the Russian invasion of Ukraine. When the EU’s main energy supplier behaves in a terroristic manner, it shakes things up prices on the market. Our duty is to cut off from these sources in the long term and not to support the financing of war, which is gradually happening,” he described the situation.
He added that the EU needs to diversify its resources energies and their suppliers, improve cooperation in the field of energy infrastructure and joint purchasing energies.
“But now we need extraordinary measures. Create a European regulatory framework as soon as possible, separate the impact of gas on the price of electricity production, even through the temporary instrument of capping gas prices. However, energy saving programs and better preparation for winter are key,” he emphasized.
He claims that there will be energy in the EU, but it is necessary to put order in pricing, to find a fairly fair regulatory framework and for energy companies to share excessive profits for the benefit of needy companies and households.
“Compensations will also have to come from European sources. They rightly expect common European solutions, because no country can deal with this situation alone,” he added.
Martin Hojsík (PS) from the Liberal faction stated that Russian President Vladimir Putin abused the EU’s dependence on gas. Therefore, the first thing to do is separate the influence prices gas from prices electricity, which leads to the production of electricity.
According to him, of the market mechanisms at the EU level, those that work should be kept, and therefore the excessive profits of all manufacturing companies are also considered justified.
“It turns out that green energy is the cheapest, and there we need to release the floodgates to development, which we have in Slovakia, for example,” pointed out. He spoke in favor of capping any gas through the pipeline and will reduce the Union’s dependence on gas.
However, for the coming winter, urgent measures are needed to protect households and small and medium-sized businesses. According to him, Slovakia should go ahead and use European money and revenue for emissions to help people connect their houses and apartments, increase the energy efficiency of companies and expand green energy to all regions.