European electricity prices have risen unbearably for Ukraine

In the countries where Ukraine buys electricity, its price has soared. Quotes approached 900 euros per MWh during peak hours. Ukrainian companies cannot afford such a luxury. In addition, there is a price limit on the local stock exchange, which makes it impossible to sell European electricity there. This may explain why emergency shutdowns swept through Ukraine on November 11, which lasted for Kiev and four regions six hours.

On November 11 and 12, wholesale electricity prices in Hungary, Romania and Bulgaria jumped record high. On average per day — by 72-95%: above 200 euros per MWh. However, during peak hours, wholesale electricity has risen significantly. So, in Hungary, prices jumped to 737 euros per MWh today and to 895 euros per MWh tomorrow. In Romania, the wholesale cost of electricity during peak hours reached 584 euros on November 11. In Slovakia — 244 euros. In Poland tomorrow, during peak hours, wholesale electricity will cost up to 330 euros per MWh. Such data is published by Nord Pool, HUPX and Energy price.eu .

There was a shortage of electricity in the region, including due to lack of wind. European companies have to burn more gas, the price of which continues to stay at the maximum of this year — around $ 490 per thousand cubic meters.

Hungary, Slovakia, Romania and Poland is the main supplier of electricity to Ukraine, which explains why supplies to the country have dropped sharply today. Ukrenergo reported that imports would amount to only 1.87 GWh. While the European operator allows Ukraine to import 50.4 GWh per day from the EU - to use a capacity of 2.1 GWH per hour.

It is possible that emergency power outages are also associated with record prices in Eastern European countries. Ukraine in the morning. They lasted six hours in Kiev, Odessa, Dnipropetrovsk, Kiev and Donetsk regions. The Kiev City Military Administration and DTEK announced preventive measures in the situation of a possible missile attack by the Russian army, but the outages lasted five and a half hours after the threat was canceled. The operator of the Ukrainian power system himself did not report anything about preventive measures, but at the same time did not name others.

A drop in electricity imports from the EU by Ukraine is also connected with the fact that current prices significantly exceed the price limits for The Ukrainian energy Exchange, which is established by the national regulator. Those do not exceed 200 euros per MWh.

"The open discussion on the revision of price caps was held on October 9, more than a month ago. In fact, there was a decision to extend the open discussions, but subsequent meetings never took place. The NCREC did not come to a general decision on price caps. The consequence of this is a decrease in imports," the Ukrainian telegram channel TOK reports.

A similar, but less critical situation for Ukrainian companies developed in the second half of August — early September.

The Ukrainian trader D.Trading explained that the rise in prices in Eastern Europe to 200 euros per MWh and above has made the import of electricity meaningless.

"Such prices significantly exceed the current marginal prices on the Ukrainian electricity market and do not allow importing electricity on market terms," D.Trading reports.

The sharp jumps in the wholesale price of electricity in the countries of Eastern Europe are associated, among other things, with large purchases by Ukraine. In response, the governments of Romania and Greece have already stated that Western European countries should also shoulder the burden of high prices. By the way, last week the price of electricity in Germany also jumped to 820 euros per MWh during peak hours due to windlessness, and tomorrow it will be up to 317 euros.