Finance

Gas price continues to fall to the level of early December

Now a megawatt hour of gas on the Dutch futures market, which is the leader for European gas prices, costs 108 euros. That was 126 euros in the evening on December 23 and even 188 euros on December 21.

Yesterday afternoon, the gas price was even slightly below 100 euros per megawatt hour.

Ships with gas to Europe

The gas price is falling because many ships with LNG (liquefied natural gas) are sailing to Europe, instead of to other parts of the world. After all, the rates are still higher here, making it more attractive to sell gas in Europe.

Despite the recent decline, the gas price in Europe is still much higher than earlier this year. A year ago, the gas price was even about 18 euros, or 83 percent lower than today.

Russia

The fact that the gas price is still significantly higher than at the beginning of this year is partly due to the fact that Russia curbed stocks just as the economies hit by the pandemic reopened and demand for energy increased sharply.

Small energy suppliers in trouble

The high gas price has caused problems for a number of small energy companies in recent weeks. Some fell, such as Naked Energy, which filed for bankruptcy two days ago.

Naked Energy ran into trouble due to another bankruptcy in the energy sector. The company purchased energy from Energie I&V, also known as Anode Energie.

Customers more expensive

Customers of energy companies that die are not left out in the cold, they are transferred to other energy companies.

But they will have to pay a considerably higher price for their gas and electricity, given the still high prices for gas and electricity.

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