Energy
Technical error at the EPEX: Key Insights for Ostrom Customers
By
Team Ostrom
26.6.2024
5
Mins read
As an Ostrom customer, you're already part of a community that values transparency and sustainable energy solutions. Recent events in the energy market have highlighted the importance of staying informed and proactive. Here's a detailed look at what happened and how it affects you.
Record Prices on the Energy Market
On the 26th of June 2024, a technical glitch at the EPEX Spot power exchange led to unprecedented price fluctuations. Electricity prices in the German market soared to 492.04 EUR/MWh, the highest since September 1, 2022. In stark contrast, other markets like Nord Pool and EXXA remained relatively stable with prices around 103.01 EUR/MWh. Similarly, Austria's EPEX prices hit 236.28 EUR/MWh, while coupled exchanges reported only 95.39 EUR/MWh.
What Caused the Spike?
The surge was triggered by a technical failure at the EPEX Spot, the Paris-based electricity exchange. This disruption forced local auctions for each country instead of the usual unified market. This disrupted the usual market coupling, leading to highly volatile hourly prices in Germany. Morning prices exceeded 200 ct/kWh, while midday saw slightly negative prices due to the lack of stabilizing Nordic hydroelectric power.
Impact on Consumers
For many customers, especially those with dynamic pricing models like Ostrom’s SimplyDynamic tariff, these fluctuations are a cause for concern. However, the overall impact on June's average electricity price will be minimal—an increase of less than 2 cents per kWh. For a typical three-person household, this translates to an additional cost of less than 5 euros per month.
What Can You Do?
- Shift Consumption: If possible, shift your electricity usage to the afternoon when prices are expected to be lower.
- Monitor Prices: Use the Ostrom App to stay updated with hourly price changes and forecasted prices for the next day.
Use Ostrom’s Smart Solutions to Mitigate Impact
- Automated Functions: EV customers using Ostrom’s Smart Charging will largely avoid these peak prices.
- Dynamic Tariffs: Even without smart load shifting, the monthly average price of a dynamic tariff remains below the market average.
Learnings and Future Outlook
- Expect Price Fluctuations: As we transition to renewable energy, price fluctuations will occur more frequently.
- Smart Consumer Control: Tools like smart meters and intelligent charging are crucial for adapting consumption to generation patterns from renewable sources.
- Market Stabilization: Smart meters help avoid peak prices and have significant potential to reduce overall system costs.
Summary
While market fluctuations are inevitable, they typically stabilize. At Ostrom, we continuously monitor these changes and optimize our purchasing strategies to mitigate peak price impacts. By staying informed and utilizing smart technologies, you can navigate these challenges and continue to benefit from green energy solutions.
For more detailed information, you can read the full report by Montel Group click here
For more information on spot prices, see the EPEX rates here
Stay green and empowered!
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