There is no relief in sight for consumers paying high electricity prices. The NASDAQ OMX Commodities electricity exchange predicts the monthly average will hold at ten cents per kilowatt hour, until the end of February, with the exception of December, and could possibly go higher.
“December prices will rise by 37 percent, compared to the spot prices we saw in November,” says Marko Pikkarainen, chief analyst of electricity company Lumme Energia.
On the other hand, Risto Kinnunen, portfolio manager of electricity company Väre, points out that November was relatively expensive compared to the previous autumn.
“And according to the latest weather forecasts, for the next two to three weeks, it will be cold, with little wind and rain, which means electricity will be expensive during the Christmas holidays,” Kinnunen says.
The cold drives up consumption, while minimal wind and precipitation reduce the supply of electricity from wind and hydropower plants. The combined effect is reflected in the price.
“If you have a contract that is linked to the electricity exchange, schedule cooking your ham roast when the spot price is lowest throughout the day,” Kinnunen advises.
The same applies to saunas, gingerbread baking and other high electricity usage appliances.
Easing in the spring
Pressures begin to ease in March, when the meltwater from snow will contribute to hydropower production and the warming weather reduces consumption. Price futures will continue to fall as summer approaches, but they cannot be relied upon completely.
“By then, anything can happen. Uncertainty increases the further out you look. But for now, it seems that the winter months are going to be quite expensive,” Kinnunen points out.
And don’t forget the sharp fluctuations in daily and hourly prices.
“Daily and hourly prices fall because daytime temperatures and the output of wind power fluctuate significantly. Supply and demand is also tied to these fluctuations, which then affects the price.”
According to Pikkarainen, while it is unfortunate, it’s also an opportunity to take advantage of lower prices and adjust your consumption.
Source: Yle
