Page 112 - Annual Report KELAG Group 2018

Natural gas consumption nationwide decreased in the above the average price level of EUR 5.7 per metric ton of
reporting period by 4.7% in comparison to 2017. This is CO2 in 2017. This is primarily due to the structural reform
attributable to the drop in consumption in the heat sector measures for the emissions trading system decided by the
due to weather conditions as well as the decline in use of European Union, which are expected to lead to a noticeable
gas power stations. reduction in the supply of emission allowances in the
coming years.
Prices on the international fuel markets recorded a sharp
increase in comparison to 2017. Increasing prices for fuels and CO2 emission allowances also
led to increasing prices on the electricity wholesale
At an annual average of USD 71.8 per barrel, the price for markets.
Brent crude oil was around 31% above the prior-year level
of around USD 55 per barrel. The annual high was reached The price for base-load electricity on the EPEX SPOT
at the beginning of October with a price of USD 85.5 per averaged EUR 44.5 per MWh in spot trading in 2018; for
barrel. Due to the growing uncertainty surrounding the peak-load electricity, the price was EUR 52.2 per MWh.
global economy, in particular, there was then a significant Compared to 2017, this corresponds to an increase of
decline to a price level of around USD 52 per barrel by the EUR 10.3 per MWh (around 30%) for base-load electricity
end of 2018. The agreement reached in November 2018 and EUR 9.4 per MWh (around 22%) for peak-load
between the Organization of the Petroleum Exporting electricity.
Countries (OPEC) and Russia to maintain the agreed cuts in
production until April 2019 is however likely to prevent a Taking into account the splitting of the previously joint
further decline in prices. bidding zone for Germany and Austria, effective since
1 October 2018, the price for base-load electricity for
Gas prices on the Austrian spot market averaged around delivery in Austria on the EPEX SPOT averaged EUR 46.3 per
EUR 23 per MWh in 2018 and were thus significantly above MWh in spot trading in 2018; for peak-load electricity, the
the level of the prior year of around EUR 18 per MWh. The price averaged EUR 53.9 per MWh. Compared to 2017, this
average forward price for the front year 2019 stood at is an increase of EUR 12.1 per MWh (around 35%) for base-
around EUR 21 per MWh, with a low of around EUR 17 per load electricity and EUR 11.1 per MWh (around 26%) for
MWh in February. Towards the end of the year, the price was peak-load electricity.
EUR 22.6 per MWh.
The price situation on the forward market for the tariff zone
The spot prices for hard coal averaged around USD 87 per for Germany was similar to the spot market and an increase
metric ton in the financial year 2018, well above the annual of around 34% was recorded, with prices increasing
average price of the prior year of around USD 73 per metric predominantly in the second half of the year. Forward
ton. According to the International Energy Agency (IEA), the contracts for the delivery year 2019 increased, at EUR 43.8
global coal market will be determined by declining demand per MWh on average for base-load electricity and EUR 53.9
in China, the US and Europe and at the same time a per MWh for peak-load electricity. In 2017, 2018 forwards
continued increase in demand in India. At the end of 2018, were traded at EUR 32.4 per MWh on average for base-load
the price for hard coal was around USD 84 per metric ton. electricity and EUR 40.5 per MWh for peak-load electricity.

Averaging EUR 15.6 per metric ton of CO2, prices in For the now separate German-Austrian tariff zone, the price
European emissions trading in 2018 were significantly situation on the forward market was similar, though prices