The requests, made by 81 suppliers and which are subject to a ceiling of 100 TWh, amounted to 160.33 TWh.
Each supplier will therefore receive an amount of ARENH equal to 62.37% of their nominal requests, which will reduce the Allocation of all consumers on an ARENH-Indexed offer in 2021 by 37.63 %.
You may recall that ARENH demand for 2021 had amounted to 146.20 TWh.
Suppliers will be looking to hedge that balance on the market as early as today, December 2nd. ย Purchases will differ based on each entity's strategy and may not conclude until December 24th - these will take place in a historically high market context (169.25 โฌ/MWh at closure yesterday).
It should be noted that the CAL22 annual contract has been evolved at levels above 150.00 โฌ/MWh since November 23rd, buoyed by extremely high gas prices (over 55.00 โฌ/MWh on the TTF market), reflective of the fears of a gas shortfall in Europe this winter. ย The market, on the other hand, is driven by the price of EUTS Emission quotas (above 68 euros/tonne CO2e. yesterday at close), which reached its highest-level last month.
Gauging the impact of the ARENH reduction will come down to your individual ARENH rights. For more information please contact us.