The price of electricity futures for the first three months of 2023 has increased by more than 50% in October, according to recent reports. The primary reason for this increase is believed to be the breakdown of the Balticconnector pipe and the ongoing tension in the Middle East. However, it was reported that during mid-October, the price of electricity futures for January-March was almost 9.5 cents per kilowatt hour (kWh), but on November 16th, trading had dropped to just under seven cents per kWh for the same period.
In an interview with Energiateollisuus ry’s director responsible for the electricity market, Pekka Salomaa, he explained that future prices are not reliable forecasts but only indicate at what point protections are made. Salomaa also reminded us that despite recent fluctuations in prices, they are still higher than those seen before a few years ago. As of Monday’s updated hourly prices, the taxable price of stock exchange electricity will be as high as 96 cents per kWh on Tuesday.
However, Salomaa also noted that while there may be significant fluctuations in electricity prices in the future, they are likely to remain relatively stable compared to previous years. He reminded us that even though stock exchange electricity was quite high last week considering the time of year and temperature, it did not drop significantly even at night when it is normally cheaper.
Salomaa advised consumers not to rely solely on fixed electricity contracts without consumption effects as they may not always be financially favorable in the long term due to risk premiums charged by energy companies who cannot predict consumer usage patterns accurately.