power prices soar to new highs

Electricity prices in the EU’s day-ahead spot markets have surged to new highs on Friday amid rising energy demand and lower gas flows from Russia.

According to European Power Exchange data, day-ahead electricity prices in France, Belgium and Germany showed the largest growth. Prices in Europe’s largest economy, Germany, rose from €599.83 per megawatt-hour on Thursday to €699.44 on Friday. The highest prices were recorded in France, where costs surged to €706.32 per megawatt-hour from €630.62 the day before. The prices in that country are now around seven times higher than a year ago. Price spikes were also evident in the Netherlands, Denmark, Switzerland and Austria.

Fresh highs on the power market are becoming a nearly daily occurrence in Europe, with prices on average in the euro area now multiple times higher than the average for the decade between 2010-2020, according to market data.

On Thursday, reports emerged that EU energy ministers may hold an emergency meeting to address the growth in power prices. The Czech Republic, which currently holds the EU presidency, is reportedly considering a bloc-wide electricity price cap.

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