When displaying electricity prices, the Ministry indicates that the exchange prices differ from those of end customers

Prices for supplying end customers are determined by suppliers and depend on many factors. In addition to the details of trading in Europe, these include the stock market strategies of suppliers and their strategies for buying and selling the quantities needed to buy them, the Ministry of Infrastructure announced on Tuesday.

« Exchange rates are very they flipare changing, while selling prices to suppliers they flip Little or almost nothing. Customers’ goal is to get a stable price and the lowest possible price. And the goal of suppliers is to offer this to customers, as they want to acquire or retain customers. The effect of current stock exchange rates on the prices customers pay is not federal. Stock exchange volatility can be reflected to a certain extent for example. Annual contracts with major clients, while for indefinite contracts with domestic clients, this connection is often absent,” They added in the ministry that the final electricity bills, in addition to the energy cost, also include network fees and contributions.

This is why you should be very careful with international comparisons of this kind, they point out. « The only criterion for price comparisons to supply end customers between countries is the verified data of Eurostat, » They say. Eurostat data shows that the price of Slovenian domestic production in August of this year was lower than the EU average according to an indicator of growth since 2015. Retail prices, including all taxes and fees, were 139 euros per megawatt-hour for households in the first half of 2022 (megawatt-hours), which puts Slovenia in the bottom third of the member states with the cheapest electricity, and the industry has €193 each megawatt-hourswhich puts Slovenia in the bottom half of the member states with the cheapest electricity.

“If, after all, one agrees that high stock prices are a certain criterion of insufficient comparison, the question rightly arises as to how good the dealers or suppliers are for the high stock prices of the country or areas It translates to one of the lowest final retail prices, which customers ultimately pay while merchants still make high profits,” they confirm.

Administrative Minister Boyan Comer He added at the press conference after the government meeting in Ljubljana that such comparisons are correct Distorted, inappropriate, and intentionally misrepresented. He stressed that stock exchange prices are not related to retail prices, even lower than the prices of the final customer. According to him, stock exchange prices are formed on the basis of an algorithm between supply and demand, and it is very important to compare us with each other.

« If the stock market is in Slovenia, it does not mean that this is the price for Slovenia, » he added.

Different types of trading and price areas Quantitatively limited energy transfer

When circulating electricity in power exchangers, it involves different products and different types of circulation – temporal, spatial and functional. Stock market prices, for example for the day in advance across Europe, they are constantly changing. Sometimes it is higher in France, sometimes in Germany, and often it is higher in Italy, says the ministry, explaining that Europe is divided into these prices. areas.

In this areas Stock prices move based on supply and demand, they flip And they are not the same thing. different prices between areas They impose limitations on cross-border capabilities, which are also not free. “If there is a lot (or enough) electrical connections between countries, the whole of Europe will have uniform exchange rates. This is how energy is transferred from one country to another. region Quantitatively limited, conditioned by capacity and as a result prices also vary or is honey areas The price difference. The price trend is mostly in the same direction, but not always. «  They explain.

The Slovenian stock market price is usually slightly lower than the Italian market price and slightly higher than the Austrian one, but this is changing, especially under certain exceptional circumstances. It is also necessary to distinguish between prices in the spot market, the next day market, and the futures market for a certain period in the future.

“These are different types of stock exchange trading and within that also different time products marketed in this way. A distinction must also be made between stock market prices for bandwidth and peak power, night power, etc. The stock market price of all these stock market products.” They say.

They added that it is also important that the price on the stock exchange consists of a very small volume of energy trading volume, especially in times of high prices, as they see that there is not a large volume of volume that is traded, especially affecting the price of something very little liquid The product and therefore the price of that product. This is especially true of the so-called micro-exchanges or stock exchanges in small markets. At the same time, this does not represent the actual situation of real prices in this country areassays the ministry.

Minister Kummer expressed his satisfaction that in accordance with the state’s retail price regulations for households and small business customers, electricity bills for September are lower than for October. He cited two examples of home customers, where the bill was reduced from 69 to 49 euros and from 39 to 33 euros. He also cited one supplier that had publicly committed to capping prices by the end of the year, thus offering prices slightly below the regulated price.