Energy sector environment
|Energy sector environment – indicators||2015/16||2014/15||2013/14|
|Temperature-related energy demand1)||%|
|Primary energy and CO2 emission certificates|
|Crude oil – Brent||EUR/bbl||38.0||52.7||79.7|
|Natural gas – GIMP2)||EUR/MWh||14.4||21.4||22.1|
|Hard coal – API#23)||EUR/t||46.2||53.9||59.5|
|CO2 emission certificates||EUR/t||6.1||7.2||5.2|
|Electricity – EEX forward market4)|
|Electricity – EPEX spot market5)|
|1) Calculated based on the heating degree total; the basis (100%) corresponds to the adjusted long-term average for the respective countries|
|2) Net Connect Germany (NCG) – EEX (European Energy Exchange) stock exchange price for natural gas|
|3) ARA notation (Amsterdam, Rotterdam, Antwerp)|
|4) Average prices for the respective EEX quarterly forward market prices, beginning one year before the respective reporting period|
|5) EPEX spot – European Power Exchange|
The development of EVN’s energy sector business is influenced to a significant degree by external factors. Energy consumption by retail customers – in the form of electricity, natural gas and heat – is influenced primarily by the weather, while the demand for energy by industrial customers is driven mainly by the general business environment.
The average temperatures in EVN’s relevant markets were extremely mild during the 2015/16 financial year. In particular the winter months were significantly warmer than usual in all three core markets. The heating degree total in Austria remained below the longterm average, as in the previous year. Bulgaria recorded unusually warm temperatures, with a heating degree total that was 23.2 percentage points lower than 2014/15. In Macedonia, the heating degree total was 8.6 percentage points below the previous year.
The average euro price for Brent crude oil was 27.9% below the previous year at EUR 38.0 per barrel in 2015/16, above all due to the worldwide oversupply. The average EEX price for natural gas fell by 32.5% year-on-year to EUR 14.4 per MWh, not least due to the higher temperatures during the reporting period and the resulting lower demand on the spot markets. The price of coal fell by 14.4% to EUR 46.2 per tonne, primarily due to weaker demand in China. After a strong increase in the price of CO2 emission certificates to EUR 8.4 per tonne in the first quarter of 2015/16, the price declined to EUR 6.1 per tonne at the end of the reporting year.
The forward and spot market prices for base load and peak load electricity also continued to decline during the reporting year. This development resulted from the further expansion of electricity generation capacity from renewable sources in Austria and Germany as well as the lower prices for primary energy carriers and CO2 emission certificates. However, the forward prices for electricity and the prices for primary energy and CO2 emission certificates increased towards the end of the reporting year due to the temporary standstill of production capacities in France. On average, the forward prices applicable to 2015/16 fell by 12.8% to EUR 30.4 per MWh for base load electricity and by 13.0% to EUR 38.2 per MWh for peak load electricity. The spot market prices declined by 13.2% to EUR 27.8 per MWh for base load electricity and by 14.2% to EUR 34.2 per MWh for peak load electricity.