On October 11, the average price on Romania’s day-ahead market (DAM) with delivery date on October 12 was set at EUR 233.6 per MWh - the highest price among the spot market in Europe, according to OMV Petrom's Q3 Trading Update.

The second-highest price was in Hungary (EUR 228.3) visibly as an effect of the demand coming from Romania - which has its power grid physically linked.

The price in Poland, the lowest in Europe (EUR 123.1), increased by 10% from the day before but still remains not far from half the price on the Romanian market.

The volume of electricity traded on DAM accounts for roughly half of the end-user consumption, therefore the higher prices on this market, albeit in principle volatile, have a significant impact on the end-user prices. 

More importantly, the bilateral contracts are signed at record prices in Romania as well. Thus, Electrocentrale Bucuresti (Elcen), which also delivers heating to Romania’s capital city, sold so-called “band contracts”, namely contracts with delivery at constant power, for November-December at prices above RON 1,100 (EUR 220) per MWh. Elcen put up for sale the contracts at a starting price of RON 760 (EUR 152) per MWh, but the buyers placed record bids.

Among the buyers, there are major electricity suppliers active on both residential and corporate segments: Enel, Tinmar, Electrica Furnizare, as well as Delgaz Grif - E.ON’s subsidiary that purchased the electricity for its own use most likely.

(Photo: Madamlead/ Dreamstime)

iulian@romania-insider.com