The price of electricity in Germany has halved in just the last three days

The price of electricity in Germany has halved in just the last three days
The price of electricity in Germany has halved in just the last three days

The European Union is considering various measures to intervene in the market

“The reference price of electricityenergyEurope has fallen more than 50% in the past three days from record highs amid signs of a concerted effort within the EU to ease the worsening energy crisis.”reports Bloomberg, quoted by BNR.

German electricity futures for a year ahead tumbled as much as 54% from Monday’s peak above 1,000 euros per megawatt hour as the European Union mulls various market intervention measures to ease massive energy costs crippling economies across the bloc. Rising prices have forced cuts in industrial production from steel to fertilizer production, with little sign yet of an imminent easing of the energy crisis.

“The expected EU intervention in the price cap market is being interpreted as a factor in reducing market energy prices, although there is still a lot of uncertainty around what initiatives the EU will take and what they will look like in detail”commented analysts from Energi Danmark, quoted by the Bloomberg agency.

The German energy exchange year-ahead contract EEH fell on Thursday to 486 euros per MWh after hitting a record high of more than 1,000 euros earlier in the week. Despite this drop, the current price is still about 10 times the seasonal average over the last decade.

Graph of electricity contracts in Germany for the year ahead (in euros per megawatt hour)

“All eyes are on the European Union for possible intervention in the market of energy. Such intervention could include some form of price cap or tax on the excess profits of power generation companies.energycommented Mehtild Voersdörfer, Senior Energy Officer at the European Commission.

Earlier this week, German Chancellor Olaf Scholz pointed out: “In the past there was a lot of skeptical debate about whether it really made sense to change the design of the market energy. However, this skepticism disappeared and everyone joined. The pressure is so great that I’m really confident it can happen quickly.”.

The article is in bulgaria

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