Energy commodity prices have fallen sharply since the start of the year; emissions allowance prices could also stabilize in Czechia

Wholesale prices of energy commodities across the European market have fallen markedly since the start of this year. Further price declines, at least in the short term, could result from the European Commission’s previously announced plan to frontload the market with emissions allowances. The first reports are now emerging that the Commission could agree to start frontloading the market in July this year. It is precisely the price of emissions allowances that is currently keeping electricity contracts for the coming years above EUR 100/MWh.

It is very positive news for the EU that energy commodity prices have fallen significantly since the start of this year. Nevertheless, they remain at levels that were previously unusual.

On the Czech market, the electricity contract for delivery in 2024 was trading at around EUR 215/MWh at the beginning of this year. Its price is now around EUR 143/MWh. Looking further ahead, wholesale electricity prices continue to fall. The 2025 contract is currently trading on the Czech market at EUR 124/MWh, while the 2026 contract is at EUR 110/MWh.