Electricity futures prices for the beginning of the year rose by more than 50 percent in October due to several factors. The main reason was the breaking of the Baltic connector pipe, which caused a surge in demand for electricity from Russia. Additionally, the re-ignition of conflict in the Middle East further increased tensions and added to the uncertainty surrounding energy markets. When January-March electricity futures were nearly 9.5 cents in mid-October, we visited on November 16 for the same time period, trading at just under seven cents.
According to Pek Salomaa, director responsible for the electricity market at Energiateollisuus ri, “The fear effect has now completely disappeared with electricity futures prices.” However, he reminds that future prices are not reliable forecasts and only indicate at what price protections are made for that particular moment. It is clear that there will still be significant fluctuations in electricity prices in the future, despite a decrease in prices compared to last winter or a year ago. Salomaa also notes that while prices have decreased since then, they remain higher than a few years ago.
In recent weeks, share electricity has been quite high considering the time of year and temperature conditions. In the third week of November (November 11-17), the average price of electricity on