Electricity prices during the last five years fell by 40 percent and the whole European energy sector, including the Czech giant , is worried. Business Director Alan Svoboda however,believes, that the reasons for a further decline will soon disappear. In an interview with Bloomberg today in Berlin, he added that the catalyst for the turnaround will probably be more expensive allowances and coal. Czech -year contract for the supply of electricity today after the interview increased by as much as 0.6 percent to 36.40 euros / MWh, which is the highest level since November 8.
"The annual futures electricity contract is likely to rebound next year, " Alan Svoboda, business manager of , said today. "The room for further decline during the next year is already limited, " he added. Price of the annual contract for the supply of German energy have fallen by 17 % since the beginning of 2013, today it grows by 0,1 % to 37.3 EUR / MWh.
Development of the annual electricity contract( EUR / MWh)
"I expect turnaround in one of the three current negative factors: the slumping coal prices, the collapse of the price of emissions and expected future development of renewable energy sources, " Svoboda said.
Alan Svoboda spoke about the prospects of with cautious optimism already in mid -September. Energy prices declined according to him because of the low price of coal, low-cost allowances to emit carbon dioxide and due to the expected growth in electricity production from renewable sources, that are subsidized. However, the first half of September brought according to Svoboda upward correction . " Perhaps we have reached the bottom, at least for the near future , " Business Director of said, adding that the company accelerated its pre-sales production for the next two years.
(Sources: Bloomberg, ČEZ)