And what about the prices?
EE: It's gas, coal and CO2 prices that are affecting the operational costs for fossil fuel plants. At the moment, CO2 is at an all-time high. And gas and coal are also close to their all-time highs. So all in all, we’re seeing all-time high fuel prices and hence all-time high operational costs for power - I think around €100-110 euro - especially in continental Europe where those power plants are very important in the generation mix.
When we look at the forward prices for the fuels, gas and coal, they are assumed to decrease, from Q2 next year. So I think that by summertime next year, based on what the market is saying, we can expect a decrease in prices.
What about price convergence between the Nordics and Continental Europe?
EE: Of course, with more connections and capacities, the connections will be stronger. And the European prices are more or less a price reference for the Nordic Region. I think that if the Nordic Region maintains a power surplus and its exporting power towards the continent, we will continue to see a certain price difference between the Nordic and the Continental prices. But it's not easy to estimate what the ‘normal’ price difference will be. I think something between €15-25, with lower prices in the Nordic Region, is likely to be the case. Right now, we’re seeing €20-25 [difference] in the spot market. It’s as if the market doesn’t have a clear view of what this ‘equilibrium’ price difference should be, they are struggling to define it. So much has changed now, just in a couple of years: we had a very wet year in Norway last year, in the Nordic Region, with very low power prices. And now we have a dry period, very high continental prices and a deficit of hydropower in Norway and Sweden.