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Hidroelectrica sells energy cheaper and cheaper
The electricity sold by Hidroelectrica through OPCOM is cheaper and cheaper from one month to the other. Hidroelectrica got to bid electricity packages at 165 lei/MWh, price including the transport as well, which is almost 10 lei/MWh, the price of a MWh being 155 lei, from 220 – 230 lei last year. Thus, the price gets closer to that used in the contracts with “the smart guys”. We remind that Hidroelectrica had signed contracts with the traders for long term at the price of 130 lei/MWH but a short time after the company got to insolvency the contracts were annulled.
The reason for the annulment was the fact that they did not reach an agreement following the renegotiation of the prices, the duration of the contracts and the quantities to be delivered. The negotiations were around the value of 180 lei/MWh.
Now Hidroelectrica bids on the centralised market of bilateral contracts 9 small packages of electricity, out of which 7 at the minimum price of 165 lei/MWh and one at 204 lei/MWh. The delivery period is of three months, April-June. The bid will take place on 1 April. Hidroelectrica was forced to sell cheaper as, since the beginning of the year, there were many sessions of bids where they sold nothing. Thus, the price dropped from month to month. The drop in the price is explainable through the offer of electricity which is higher and the demand which is lower. Many players started to prefer tradings on the platform of the day-ahead market avoiding bilateral contracts on a long term. And on the DAM the prices went down even more, reaching on Wednesday an average of 98 lei/MWh.
The offer grew following the coming on the market of renewable energy. This year, Romania has an excess of 14 TWh and it is for the first time when Romania has a drop in consumption, Remus Borza, the judicial administrator of Hidroelectrica said. According to him, in February 2013, the consumption was 11% less than the same month of last year. As “ there are many players, many producers and the consumption is very little”, Hidroelectrica could sell a part of the production to export, Borza said.