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UPEE position on the price shock on the free electricity market

The Union for Private Economic Enterprise is deeply concerned about the uncontrollable rise in electricity prices on the day-ahead market. The UPEE insists on swift action without delaying difficult decisions. EU Energy Commissioner Kadri Simson himself said there should be a swift and coordinated response.

During the debate on measures to limit the impact of rising electricity prices in the European Parliament on October 6th 2021, the need for a set of measures was clearly stated – by Member States to support vulnerable households and SMEs and by the EU to reform the gas market and to overcome speculative practices.

In this context, the UPEE supports the efforts made in the national plan to counteract the speculative practices on the electricity market, which are undoubtedly one of the factors with a direct adverse impact on electricity prices on the free market in our country.

However, targeted action must be taken to overcome the adverse impact on the other major factor, the systemic. In this area, work should be done in two directions – implementation of systemic measures at national and supranational level and simultaneous implementation of measures to support enterprises to overcome the price shock in energy.

The non-domestic consumers of electricity from the low voltage networks are about 300 thousand small subscribers from the economic and public sector, whose total annual consumption is about 4.5 MWh. For these consumers, the price shock of the free electricity market is unbearable and will lead to business closures and rising unemployment.

Immediate state intervention is needed to implement measures to provide timely support to SMEs to overcome this price shock and to stabilize the economy.