Data from the Public Utilities Commission (PUC) show that 2020 ended with a 1.1% decrease in the price of electricity for households and a 1.7% increase for legal users compared to 2019. However, there is still a high level of interest among households in concluding contracts at both fixed and exchange prices, with the share of universal service declining.
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 exchange has a significant impact on the price that users will pay. From October last year until February of this year, the price on the stock exchange increased to 59.15 EUR / MWh. The equivalent price was last observed in August 2018 – 59.05 EUR / MWh.
The increase in the price of electricity 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 9.8% higher than last year, taking into account the cold weather. This situation was also exacerbated by capacity congestion in Scandinavia and rising CO2 emission allowance prices.
“With the start of the flood season and warmer weather, the price of electricity is expected to stabilize and even fall. In March, such sharp jumps in prices as in February, when the price of electricity in some hours reached more than 200 EUR / MWh, were no longer observed, ”explains Jānis Negribs, a representative of PUC.
PUC data show that in December last year 134 thousand. or 14.5% of households paid for electricity at the stock exchange price, while at a fixed price of 531 thousand. or 57.6% of households. Among legal users, 44.3% have chosen the stock exchange price, but 55.7% have chosen the fixed price
“For users who have chosen the stock exchange price, the opportunity to save at the end of last year and at the beginning of this year decreased significantly. However, this year the average stock exchange price has dropped to 43.55 EUR / MWh in March. On Easter, on the other hand, there was a temporary negative stock market price at night. This shows a positive trend for users to save on the stock price, ”says Negribs.
The extent to which this price increase is 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, whereas in the case of a fixed price contract, the price will change at the time of the contract switching and will depend on the current price forecasts.
We invite you to get acquainted with the electricity market review in the 4th quarter of 2020 in the PUC infographics:
The Public Utilities Commission (PUC) is an institutionally and functionally independent, full-fledged, autonomous public law entity that regulates public utilities in the energy, electronic communications, postal, municipal waste management and water management sectors in accordance with the Law on Public Utilities Regulators and Regulated Sectors. regulatory enactments. PUC independently performs the functions assigned to it by law and, within the scope of its competence, independently makes decisions and issues administrative acts that are binding on specific public service providers and users.
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