Page 112 - Annual Report KELAG Group 2018
P. 112

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
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