Electricity Prices Expected to Fall, Says Expert ({{commentsTotal}})

Einari Kisel, Estonia's official on the World Energy Council, said that a combination of the warm winter and increased international power connections could drive electricity prices down this year.

Speaking on ETV's “Terevisioon” program today, Kisel said that there are many positive signals, such as the vast amount of hydro energy in Norway due to the unusually warm winter, which can be sold in Estonia after the Estlink 2 cable becomes operational this year.

He said that the current price is around 38 euros per megawatt-hour, still high compared to the Scandinavian average of between 10 and 15 euros, adding that Estonian consumers may see those prices at some point.

Heating bills could also decrease, Kisel said, as they closely follow world gas and oil prices, which are on the downward trend. He added that oil prices could further tumble if the US decides to begin exports and (relative) peace in oil-producing nations continues.

A electricity cable connecting Lithuania and Sweden that will be finished in 2016 will increase supply from Norway even more, Kisel said.