The Committee for Energy Regulation (CRE) published on December 1st the total ARENH Demand for 2022.
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. 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 €/MWh at closure yesterday).
It should be noted that the CAL22 annual contract has been evolved at levels above 150.00 €/MWh since November 23rd, buoyed by extremely high gas prices (over 55.00 €/MWh on the TTF market), reflective of the fears of a gas shortfall in Europe this winter. 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.
The information above is an excerpt from the applicable report referenced above. For a full and complete copy of this report please complete the form below, sign up for our newsletters or schedule a virtual meeting at your convenience.