Russian authorities want to cancel the nightly overstatement of electricity prices

Power generators may be barred from changing price bids for electricity bids at night industry, which usually happens at night, writes Kommersant.

Electricity producers may be prohibited from changing price bids for electricity bids at night, which made it possible to inflate wholesale prices. The Russian authorities plan to abandon this tool as early as February 2022. The industry has been striving for such a decision for ten years.

The Community of Energy Consumers notes that the overpayment due to the use of the mechanism reaches 25-40 billion rubles a year. The generating companies opposed the proposal of the Ministry of Energy, they ask to solve the market problems in a comprehensive manner. The companies also note that the issue is not very relevant, in their opinion, it is worth paying attention to other industries. For example, prices for metallurgical products have increased by 37 percent since the beginning of the year, while the cost of providing electricity and heat has increased by only 4.9 percent.

It was previously reported that electricity in Russia could soar in price by 26 percent compared to 2050 due to energy transition. According to the Minister of Economic Development Maxim Reshetnikov, the forced energy transition for some economies results in such tangible costs, which, in his opinion, not everyone expected.