Electricity futures prices for the beginning of the year rose by more than 50 percent in October due to a combination of factors, including the breakage of the Balticconnector pipe and the re-inflamed situation in the Middle East. The fear effect has now melted away from electricity futures prices, but it is important to note that future prices are not reliable forecasts and only indicate at what price protections are made for a particular moment.
Is the electricity price crisis finally over? According to Energiateollisuus ry’s director responsible for the electricity market Pekka Salomaa, there will still be significant fluctuations in electricity prices in the future. While the price of electricity is now lower than it was last winter or a year ago, it is still higher than before the last few years. The updated hourly prices on Monday show that the taxable price of stock exchange electricity will be as high as 96 cents per kilowatt hour on Tuesday. Salomaa reminds that while the electricity supply situation in Finland is now better than a year ago, there have been fluctuations in pricing during recent weeks due to high temperatures and other factors.
In late November, we saw average daily prices for stock exchange electricity ranging from more than 10 cents to 16 cents per kilowatt hour on most days, with no significant drop even at night when it is usually cheaper. This trend highlights the importance of being vigilant about monitoring energy costs and understanding how they can impact your overall expenses.
Salomaa advises consumers against fixed electricity contracts without consumption effects, as these contracts carry a risk premium for energy companies due to their uncertainty about when customers will consume their energy. Instead, he recommends seeking out variable rate plans or negotiating with energy providers to secure better rates based on usage patterns and individual needs.