Culea, Enel: The price of energy from January 1 will also depend on the risk appetite of consumers

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The price of energy for household consumers after January 1, 2021, when the market will be completely liberalized, will depend on the market conditions, but also on the risk appetite of consumers, who will have offers at low prices, in the short term, or fixed prices for a longer period, said Cristi Culea, a director with Enel.

“Certainly the offers will be varied and will reflect the market conditions from that moment. It is difficult to say now and we cannot answer how the price will evolve. For example, if we look at the gas market, six months ago there were some prices and now they are completely different, and in the meantime the market was liberalized (from July 1),” Said Culea, according to Agerpres.

According to him, the prices will be different depending on the risk policy of the suppliers, respectively if they buy short-term energy at a lower price, as it is now on the spot market, or ensure a safer, long-term portfolio at higher prices.

”Now, if we look at DAM (day ahead market), the prices are very low, and those in the forward markets, relatively high. A provider who is reluctant to take a risk and wants to better protect their customer will go forward, and another provider who bets that the DAM will stay down will offer a lower price, but if the price will grow, so will the tariff paid by the client,” Culea added.

In his opinion, just as suppliers have a risk appetite, so do consumers.

“Consumers can look for a low price, with a short-term contract, there is no problem, it is everyone’s risk appetite”, added the Enel representative.

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