Coal shortages may bring a 50% increase in electricity prices and other energy prices for consumers in Poland in 2023.
The dynamically growing electricity prices on the Polish Power Exchange prompted the market guardian, the Energy Regulatory Office, to look at the increases.
Record level of over PLN 1,000 / MWh
The rates of contracts, with delivery for the entire next year, reached a record level of over PLN 1,000 / MWh at the beginning of May. “This is much more than the average level for such a contract from the beginning of the year: it is PLN 701 / MWh, while the average for the entire year 2021 in annual contracts is PLN 384.16 / MWh.
Market participants, trading companies that have to obtain energy on TGE, ask the Energy Regulatory Office whether there has been any manipulation, this one starts a study and asks energy producers for an explanation,” writes the daily. He points out that the ERO does not indicate those who are to blame for the high prices.
Electricity prices increases may reach 50%
“The President of the Energy Regulatory Office, Rafał Gawin, emphasises, in an interview with Rzeczpospolita, the uncertainty in the coal market and the practice of terminating supply contracts, in the hope that new contracts will be more profitable for suppliers. electricity prices from TGE will stay longer, then electricity tariffs for individual consumers may increase by 50% next year. “
As Rzeczpospolita has found out, the ERO analyzes the events on the market. The Authority took action after receiving at least several requests to investigate the reasons for such high and sharp price increases. What can the ERO examine? “We are trying to explain whether the level of energy prices results from fundamental market mechanisms and whether energy prices properly reflect the present and future value of its costs” – the President of the Energy Regulatory Office tells the newspaper.
Source: Bankier
