the wholesale price of European gas divided by five since August 2022 – RT in French
Falling from 342 euros per megawatt hour in August to 72.75 euros on January 2, the wholesale price of natural gas in Europe is at its lowest level since the start of the conflict in Ukraine. This decrease is partly due to favorable climatic conditions.
Almost five times cheaper than in August: the wholesale price of natural gas in Europe fell on January 2 to its lowest level since the start of the conflict in Ukraine, continuing its decline thanks to a relatively warm winter which saves inventory.
The benchmark contract for the continent, the TTF in the Dutch market, fell a further 4.67% to 72.75 euros per megawatt hour (MWh) for delivery in February, around 9:35 a.m. (8:35 GMT) on the morning of January 2, the lowest price since February 21.
The price of gas, for delivery the following month, fell by nearly 50% in one month and fell significantly after the summer peaks: in August 2022, it had peaked at 342 euros per megawatt hour.
A drop in price that does not affect the consumer’s bill
Gas prices began to rise in the fall of 2021, with the start of a reduction in Russian gas deliveries to Europe, then very sharply from February 24, 2022, the date of the start of the denounced Russian “special military operation”. by kyiv and its Western allies as a war of invasion.
Since then, the gas pipelines between Russia and Europe have almost all been closed in the wake of Western sanctions. As such, the EU intended to reduce its consumption of Russian gas by two thirds before the end of 2022, and by 100% from 2027.
This downward trend is particularly linked to favorable climatic conditions. The price of gas affects electricity, as many European power plants burn gas to generate electricity.
In France, the price of wholesale electricity for delivery in 2023, which had exceeded 1,000 euros/MWh at the end of August, fell to 240 euros on December 30, the lowest since April. But these variations in wholesale prices do not have a direct impact on the prices charged to consumers, because electricity suppliers are smoothing their rates, a fortiori in this period when prices can jump from one day to the next.