Gas prices are falling and there are cheaper suppliers again. Expert sees “hundreds of euros” savings potential.
Mass easing in the gas market: since the panic-related peak last year with wholesale prices of more than 300 euros per megawatt hour, these have fallen sharply again. Yesterday, the price of European natural gas fell below 30 euros for the first time (see graph). Reasons: Storage facilities are well stocked, enough liquefied gas can be imported throughout the EU, dependence on Russia is reduced and the economy is generally weaker this year, which is depressing demand.
“Market in motion”
But what does that mean for consumers? Will we soon pay less for gas? Wolfgang Urbantschitsch, head of the E-Control regulator: “Both an increase and a decrease in wholesale prices have a delayed effect on the prices of the end customer.” That’s because the big energy companies always buy gas up front – and still expensive in 2022.
Nevertheless, according to Urbantschitsch, the market is “on the move”. Especially for new customer contracts, there are again cheaper rates – both for gas and for electricity, which is linked to the gas price: “In January or February, at best, you got a new electricity contract for 28 cents per kilowatt hour. Now the new tariffs have one ahead – so electricity is already offered for 18 to 19 cents!”
Switching providers pays off
A change of provider often pays off: if you switch from the state energy supplier to the cheapest alternative, you can save “hundreds of euros” per year on electricity and gas. Specifically, the savings potential for electricity is currently up to 494 euros, depending on the state, and for gas even up to 1416 euros. Urbantschitsch recommends comparing prices in E-Control’s online rate calculator.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
