Cost of CO2 drives electricity prices throughout Europe
The German Competition authority (Bundeskartellamt) is currently investigating price performance in the German electricity wholesale market. The authority is particularly exploring, whether the effective reflection of the (opportunity) cost of emission certificates in wholesale prices as observed in the EEX Power Exchange is consistent with competitive conduct. The Bundeskartellamt conducted a public hearing on Thursday, 30 March 2006.
On behalt of RWE Frontier (London & Cologne) explained that the reflection of CO2 permit prices in power prices is not an observation unique to the market that includes Germany but is also observed in other competitive power markets such as in the UK or Scandinavia.
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