Energy expert predicts volatile electricity prices this winter

Agnes Roos.
Agnes Roos. Source: ERR

Energy expert and former Eesti Energia board member Agnes Roos hopes that this winter will not be as bad as the last one when it comes to energy prices. However, Roos believes that we will still see very volatile energy prices in the colder months ahead.

Roos told ETV show "Terevisioon" that this summer, as expected, electricity prices in Estonia have been relatively low. This was due to there being a higher proportion of renewable energy available on the market and is also most likely to be the case during future summers. However, she also said that for the winter ahead, we will see highly volatile prices again.

"We could see cheap prices, but we could also see really high prices. It depends on what kind of winter it is - warm or cold. That in turn will depend on the supply of hydropower in the Nordic countries. If it is cold, more and more gas will be used for heating in Europe. If gas reserves run very low, then the price of gas will also rise, which will immediately be reflected in electricity prices," Roos explained.

"I hope we don't have as bad a winter as the last one, but if it's a very cold winter, then that could happen."

When asked for advice on what kind of electricity package consumers should opt for, Roos said that in the long run, the exchange package is still the fairest.

"However, if the prices there go up, then our nerves won't hold out. Plus, for a lot of people, it's not possible to spend so much money in one, two or three months. If you want to sleep peacefully at night, it is probably very sensible to fix the price," Roos said.

The energy expert added that in this case the question arises for how long to fix the price for. For those who only want to do so during the winter months, choosing a six-month electricity package might be the best option. However, it is also possible to opt for long-term packages, lasting up to seven years in some cases.

The fact is that the longer the length of the package, the cheaper the price. Everyone has to make their own choices in line with their consumption habits and means," said the energy expert.

Roos does not currently see any reason for consumers to opt for the universal service. "All fixed price options are better than universal service. At the moment, the universal service is the most expensive."


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Editor: Michael Cole

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