Electricity prices in Germany exceed €700 for the first time

The cost of electricity in Germany rose by 25% in August, exceeding €700 per MWh for the first time.

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This figure is about 14 times higher than the average seasonal figures over the past five years. Such a large increase in electricity prices is due to fears around the suspension of the Nord Stream 1 pipeline.

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Gazprom announced a temporary cessation of fuel transit through SP-1 due to the repair of the only working Siemens turbine. It is planned to carry out technical preventive maintenance from August 31 to September 2, 2022. If no malfunctions in the operation of the turbine are found, the monopolist will restore the pumping of fuel to Germany at the current level – 33 million cubic meters per day.

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Against this background, gas prices in Europe on the London ICE exchange on August 23 by 13:20 Moscow time reached $2,863 per thousand cubic meters. On the eve of the estimated cost of fuel has become a record for the entire history of the operation of European gas hubs, having reached $2861.6. At the same time, at the opening of trading on August 23, the bar was approaching $3,000.