Romania, Failure of the first auction on the futures market

, SEE Energy News

This year’s first offer for the sale of electricity on the futures market in Bucharest was not successful, due to the too high price. It seems that Romanian suppliers can no longer afford to buy electricity at an extremely high price.

On January 3, the Romanian producer of electricity and thermal energy, Power Plant Bucharest offered for sale five packages of electricity, in a band, on the market for bilateral contracts – the extended auction method of the OPCOM stock exchange, for delivery in the period from January 10 to December 31, 2023. years. There are three power packages of 5 MW each and two packages of 10 MW each, i.e. a total of 300 GWh of electricity. This was the first auction in this market in 2023.

The manufacturer asked for a price of 1,700 BGN (about 344 EUR) per MWh for each of the packages, and received only one offer, from the supplier Elektrik Furnizare, which offered a much lower price – 1,200 BGN (244 EUR). Therefore, no transaction was realized.

Eltsen directly claimed this price, trying to repeat the success of December. In the same market, on December 8, the producer of electricity and thermal energy offered for sale nine packages of electricity, in a band, with a total power of 60 MW, for delivery in the first quarter of 2023. The requested price was BGN 1,300 (264 euros) per MWh.

It is the maximum procurement cost that the state recognizes to suppliers when compensating the difference between the purchase price and the upper limit at which they can sell electricity to end customers. Therefore, if the supplier buys electricity of the set threshold, he will realize a loss.

Big suppliers, such as Enel, E.On and Tinmar, submitted bids for all eight Elcena packages in December at prices up to 284 euros per MWh, but EDS offered the highest price and managed to buy the total offered quantities at a price that ranged from between 291 and 294 euros per MWh.