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.


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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