The price of electricity futures for the beginning of the year has increased by more than 50 percent in October, according to recent reports. The reasons behind this rise are believed to be the breakdown of the Balticconnector pipe and the re-emergence of tensions in the Middle East. On November 16, when trading was conducted for the January-March period, the electricity futures price had dropped from almost 9.5 cents in mid-October to just under seven cents.
However, Pekka Salomaa, director responsible for the electricity market at Energiateollisuus ry, believes that this fear effect has now dissipated. He emphasizes that future prices are not reliable forecasts and only indicate at what point protections have been made for a particular moment.
It is unclear whether the electricity price crisis is finally over or if there will still be significant fluctuations in prices in the future. According to Salomaa, while prices are currently lower than they were last winter or a year ago, they remain higher than before several years ago. On Monday, updated hourly prices showed that taxable exchange electricity would be sold at a price of up to 96 cents per kilowatt hour on Tuesday.
In recent weeks, stock exchange electricity has been relatively high considering the time of year and temperature levels. During November 11-17th week (November 11-17), average daily prices on exchange were above ten cents per kilowatt hour on most days except Thursday (November 16) where daily average price was no less than 16.3 cents per kilowatt hour. Prices remained stable even during night hours when it is typically cheaper.
Salomaa advises consumers against signing fixed electricity contracts without consumption effects because it carries an additional risk premium for energy companies due to uncertainty about when customers use their electricity usage patterns. He recommends that consumers consider other options such as flexible contracts or self-generation systems if possible.
Overall, while there may be some relief from high energy prices in certain regions and at certain times of day, it is important for consumers to carefully evaluate their options and make informed decisions about their energy needs moving forward.