Monday's price of electricity in NordPool's Estlink market region set a new record.

The price peaked at 148.01 €/MWh (2.3 kr/kWh). The peak price originated in Finland and signals the increased influence of Helsinki producers following the receding of spring high waters as well as of Latvian and Lithuanian buyers.

The exchange's price of electricity in both Estonia and Finland was impacted by the decreased supply of electricity with low variable costs that had been available during spring flooding. The output of the largest hydroelectric energy producer in the region, the Latvian hydro plant, has dropped from 1400 MW to about 500 MW.

Other important reasons behind the increase in prices in Finland is repairs on the Russian-Finnish power cable and lower than usual capacity of flows of electricity as well as repairs to power plants scheduled for the summer period. In addition, the Loviisa 1 nuclear power plant went off line this morning.

The combination of these factors has had a higher impact on the exchange price of electricity than the pressure stemming from lower consumption (approximately 40% less electricity is consumed in Estonia in July than peak winter levels).

Monday's peak price originated in Finland; electricity flowed from Finland to Estonia during peak hour. Latvian and Lithuanian consumers are buying electricity at high prices – this can be seen from the power production and consumption data posted on the Elering website as well as from the cross-border transmission flows – Estonian production is about 300 MW greater than consumption (about 1200 MW of power generated and about 900 MW consumed, about 30 MW imported from Finland, and about 330 MW exported to Latvia).

The greater uniformity of prices in Nordpool's Estlink and Helsinki market regions signals harmonization between the two market regions.

Margus Vals, Eesti Energia Energy Trading Business Unit Director