Electricity prices continue to reach record highs in wholesale markets driven by natural gas, which is also renewing highs. The scenario is repeated in almost all of Europe. On Friday, the UK was shocked to wake up to the not entirely unexpected news that annual energy prices are set to rise by 80% for households from October. In the main wholesale markets, electricity futures contracts for next year exceed 1,000 euros per MW hour in France (on Friday) and in Germany from this Monday. On the same day, the President of the European Commission announced an emergency intervention in the European electricity market, as well as a structural reform.
Brussels prepares an “emergency” intervention and can follow the Iberian model to stop the electrical escalation
Portugal and Spain have not escaped this upward wave, although the protection of the Iberian mechanism makes it possible to contain the effect against their neighbors. Last Wednesday, the price in the Iberian market reached 450.85 euros per MW hour (already including the cost of the mechanism). It was the highest figure since the natural gas cap went into effect and for the third day in a row. Prices relaxed at the end of the week, but energy purchase futures contracts -electricity and gas- confirm that the upward trend will continue until winter.
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Source: Observadora
