Expert: fluctuations in the market will continue, this should lead to thinking about fixing the price of electricity | Business

In the first summer month of this year, the lowest electricity price in the Lithuanian price zone of the Nord Pool exchange was -0.79 ct/kWh (with VAT), the highest was 40.49 ct/kWh (with VAT), and the monthly average was 11.09 ct /kWh. This means that the average final price of electricity for consumers who chose a plan linked to the exchange (ESO plan “Standard”, tariff for one time zone) was regarding 22.25 ct/kWh (including VAT), or as much as 20.8 percent. more than in May.

Valdemar Fiodorvič, head of the Market Research and Analytics Department of the green energy solutions company Enefit, notes that the increase in electricity prices on the stock exchange was due to two main reasons – increased energy demand due to hot weather and scheduled works in the electricity transmission infrastructure, which made it difficult to distribute cheaper energy in the Baltic States.

He notes that stability in the electricity market should not be expected for the next six months either, as the air temperature is predicted to be higher than the long-term average, and some electricity transmission links, such as the NordBalt connecting Lithuania and Sweden, will operate with limited capacity even until October. Therefore, it is likely that during the next six months, the average monthly prices in the Lithuanian zone will vary from 7.6 to 12 ct/kWh.

“Such price fluctuations are bad news for consumers with exchange-linked plans, as it will be difficult for them to plan their electricity expenses. It seems that part of the population faced this problem already in June, because recently we have been recording a growing number of fixed-price electricity supply contracts,” says V. Fiodorovič.

An Enefit expert says now may be a good time to switch to fixed-price plans. This can also be done without any restrictions by changing the independent energy supplier and choosing the one that provides the best fixed price offer that meets the user’s needs.

Makes budgeting easier

“For example, last week electricity prices in the Baltic countries fluctuated sharply once more and ranged from 70 to 160 EUR/MWh. Periods with very high prices due to low wind speed and solar radiation, as well as technical failures in power plants, were also recorded.

Volatile market conditions indicate that price fluctuations can also be expected in the future. “Fixed price contracts, which ensure stable accounts, allow us to protect ourselves from such unpredictable fluctuations,” emphasizes V. Fiodorovič.

According to the Head of Market Research and Analytics at Enefit, fixing the price of electricity makes it easier to plan and manage the household budget, as monthly electricity bills become predictable and do not present unexpected inconveniences.

This is especially relevant for families and individuals with a limited budget and the need to maintain financial stability: “Knowing that the electricity bill will not suddenly increase, consumers can feel calmer and less worried regarding their financial situation. This ultimately contributes to a better overall quality of life.”