Analytics, Energy, Energy Market, EU – Baltic States

International Internet Magazine. Baltic States news & analytics Thursday, 17.10.2019, 08:49

Eesti Energia: Warmer weather brought down electricity price in March

BC, Tallinn, 09.04.2019.Print version
The decline in the price of electricity in price area Estonia in March can be attributed to unexpectedly warm weather and improved hydro stocks, the Estonian state-owned power generating and power distribution group Eesti Energia said.

Compared with February, the price of electricity in price area Estonia declined 15.2% to 40.1 euros per megawatt-hour, it appears from the March energy market overview of Eesti Energia.

The price of electricity fell 14.5% to 40.01 euros in Finland, 15.3% to 40.07 euros in Latvia and 14.9% to 39.99 euros per megawatt-hour in Lithuania.

At the same time, electricity price is still experiencing pressure from the growing CO2 quota market, which is in an anxious situation in the pre-Brexit confusion. Namely, it is possible that the United Kingdom will also exit the European quota market and that may cause a quota surplus on the market and thus bring the price down. 

On the basis of future transactions, the average price of electricity in April can be estimated to be approximately 37.6 euros per megawatt-hour. Based on the warm start to the month, it may be presumed that the drop in electricity price is justified, but should a wave of cold weather arrive mid-April, the price may also start rising. On the other hand, a notable drop in consumption helps keep the price under control, Eesti Energia said.

The price of crude oil continued stable growth in March. In comparison with the average prices of the month, the price growth turned out to be 4 percent, which made out an average price 67.03 dollars per barrel in March. Compared to monthly closing prices, the price per barrel of crude oil rose 3.6 percent to 68.39 dollars in March. Thanks to promises by the Organization of the Petroleum Exporting Countries (OPEC) to raise production restrictions and due to concerns in Venezuela and Iran, oil prices continued on an upward path.

However, the price of gas declined in March. The price of GasPool declined 12.5% to 16.15 euros per megawatt-hour and TTF price fell 13.4% to 15.65 euros per megawatt-hour. The drop in gas price was caused by warming weather and the season, which significantly diminishes the demand for gas.

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