Electricity Exchange Price Cheaper Than Latvian and Finnish Price in September

According to reports from the Nord Pool Spot (NPS) Nordic electricity exchange, the average electricity price in the Estonian price area in September was 31.70 euros per megawatt-hour, lower than the average Finnish price of 31.75 euros. Differences with the price in Finland only occurred for six hours in September.

In Estonia, the electricity price increased by 1.6 per cent in comparison with August; in Finland, the increase in price was two per cent. Although during the five months preceding September the monthly average prices of Latvian and Lithuanian price areas rose, in September prices fell by 4.5 per cent compared to August, reaching 44.30 euros per megawatt-hour. Nevertheless, the price in Latvia and Lithuania remained 12.6 euros higher than those in the Estonian price area.

Electricity price also fell in the Danish DK1 price area, which saw negative prices for three hours in September. The lowest price was minus 2.33 euros per megawatt-hour.

Last month, the NPS system price increased by 33.7 per cent compared to the low level of August, remaining at 17.45 euros per megawatt-hour.

After day-ahead transmission capacity distribution, Estonian-Finnish power flow was directed from Finland to Estonia for 714 hours and from Estonia to Finland for two hours. The power flow between Estonia and Latvia was directed towards Latvia for the entire month and 96.5 per cent of the transmission capacity given for trading was used. In the case of Estonian and Finnish connections, the same indicator was 48 per cent, whereas the full transmission capacity of the connections was not used at any time.

There were no significant changes in carbon dioxide emission quota prices, which influence the price of electricity production. Last month, the lowest closing price was 7.9 euros, the highest price 8.26 euros and the average for the month was 8.11 euros per tonne.

According to financial transactions on the Nasdaq OMX Commodities market, the average price for electricity in the NPS Estonian price area for October 2015 is expected to be 30.70 euros per megawatt-hour, and the average price in the fourth quarter may reach 31.20 euros per megawatt-hour.

In September, profits from the transmission capacity totalled 1100 euros from the Estonian-Finnish connections and 6,024,501 euros in the Latvian direction. The auction yearly product price for risk hedging instruments or PTRs-limited sold to market participants was much lower than the actual price difference between the Estonian and Latvian price areas, with the quarter and month product price being higher than the actual price difference. As a result, market participants who bought PTRs-limited earned 592,768 euros in profit in September. Elering’s profit for cross-border capacity distribution was 2,716,422 euros in September.