Romania, The price of electricity for the first quarter of 2023 reaches 294 euros per MWh

, SEE Energy News

Energy Distribution Services (EDS), a Romanian electricity supplier, surprised market participants after it agreed to buy electricity on the OPCOM exchange at a high price of around 294 euros per MWh, for delivery in the first quarter of 2023.

Electrocentrala Bucharest, a producer of electricity and thermal energy, offered for sale, on the market for bilateral contracts – extended auction method, nine packages of electricity, in a band, with a total power of 60 MW, with 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.

That’s why this move by EDS represents a big equalization on the market. It is not clear whether the supplier hopes to stay below the prescribed threshold of 264 euros per MWh with some earlier purchases, or expects to be able to resell the purchased quantities on the spot market at higher prices in the first quarter of next year.

For all eight packages of Elcena, offers were submitted by large suppliers, such as Enel, E.On and Tinmar, at prices up to 284 euros per MWh, but EDS offered the highest price and managed to buy the total volumes offered at a price ranging between 291 and 294 euros per MWh.