PDF - 9Mo - Grande Dixence SA

GD. P.65CEGElectricity prices vary enormously during the year. Ingeneral, they are lower in summer than in winter. Theyare highest during peak periods of consumption.Many factors account for these fluctuations, mainly:■ Changes in primary energy prices (oil, gas, coal).■ Production costs of the latest power plants to bebrought into service to meet demand.■ Meteorological conditions (very cold and very hotweather pushes prices up).■ Stored water reserves, which vary from year to year.In the longer term, other factors will also influence electricityprices. Constantly rising demand and reducingreserve capacity everywhere in Europe will play a fundamentalrole, as will the increasing problems of congestiongiven the notable lack of cross-border transmission capacity.Other unknowns will also have an influence. Howfar will the markets open up in fact? Are we moving towardsgeneral liberalization or oligopolisation?It can only be said that setting electricity prices has becomea complex matter. Surviving in this uncertainworld means being flexible. More than ever it is betterto be a very good… tightrope walker.