Why does the price of electricity fluctuate so much

First record levels, now massively falling prices: Europe’s electricity exchanges are turbulent. What’s behind it? And what could the federal government’s electricity price brake do? The most important questions and answers.

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Michael Bauchmüller and Björn Finke

Madness and relaxation – on Europe’s power exchanges they are very close these days. Last Monday, prices rose to an incredible 870 euros per megawatt hour – only to be more than halved just five days later. On Sunday, they fell to around 50 euros in the meantime – which was of course more of a usual price in previous years. And already this week things can go uphill again rapidly. What’s going on there? What does that mean for the next electricity bill – and what does the government’s electricity price brake bring? An overview.

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