Europe’s gas prices fall below €100 MWh for the first time since June

Europe’s fuel costs have fallen under €100 per megawatt-hour for the primary time since mid-June, as gentle autumn climate tame demand and storage amenities attain near-total capability.

On the finish of Monday, the Dutch Title Switch Facility (TTF), Europe’s main buying and selling hub, futures contract for November closed at €99.17 per megawatt-hour (MWh).

Tuesday morning confirmed an analogous development, with costs hovering round €95 MWh.

Whereas costs stay exceptionally excessive, the information gives some reduction for customers beneath monetary stress.

Wholesale costs instantly influence the retail worth that households and firms pay each month. These closing payments additionally comprise additional prices associated to community upkeep, taxes and operational charges.

The final time fuel costs fell under the €100 MWh mark was mid-June.

Costs then rose at a pronounced charge as governments rushed to fill underground fuel storage and Russia’s manipulation of provides fuelled hypothesis.

The TTF broke all-time data when it reached €349 MWh in late August.

After that, costs started to lower progressively.

The EU’s common storage capability is now at 93%, which implies governments don’t want to purchase as a lot backup fuel as they did in earlier months.

On the similar time, industrial manufacturing and shopper consumption are being constrained by excessive power payments, resulting in a dip in demand and a consequent fall in costs.

It is unclear how lengthy the drop in fuel costs will final.

EU officers concern a colder-than-usual winter will stoke demand for electrical energy and heating, push costs to unsustainable highs and irritate the financial recession.

Futures contracts for the upcoming months confirmed costs properly above the €100 MWh threshold.

The power disaster stays excessive on the EU’s agenda.

Final week, the difficulty of worth caps took centre stage on the European Council in Brussels.

On the finish of the assembly, leaders gave the European Fee the go-ahead to place ahead a mechanism to curb excessive circumstances of hypothesis and volatility on the TTF.

Nevertheless, this instrument is not going to be a broad worth cap, as some EU nations have demanded, and can as a substitute act as an emergency ceiling.

“The time has come,” stated European Fee President Ursula von der Leyen. “You will need to transfer with a transparent sign that we’re keen to be dependable companions available on the market however not at any worth anymore.”

In parallel, the Fee is engaged on a separate, distinct buying and selling hub just for liquefied pure fuel (LNG). The manager argues the TTF is overly influenced by the ups and downs of pipeline fuel flows.