Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Europe’s energy bills could be lower than expected this winter

Europe’s energy bills could be lower than expected this winter

The possibility of winter blackouts in Europe is being held at bay by falling gas prices.
A spell of unusually warm weather, plus improved supplies, saw the wholesale price of gas drop below €100 per megawatt-hour (MWh) for the first time since mid-June on Monday.

It’s not a household name exactly, but the Title Transfer Facility (TTF) in the Netherlands is Europe’s leading trading hub of fossil gas, where traders swap ‘futures contracts’ for the asset, thereby setting its price.

Gas rose to a record €349 MWh in late August as governments grappled with underground storage deficits and shortages due to Russia’s war, before starting to gradually decrease.

Though they can take a while to make a dent in bills, wholesale prices directly impact the retail price that households and companies pay every month.

It’s not unqualified good news — one climatologist calls the October heat a sign of climate change “spiraling out of control” — and it’s unclear how long lower gas prices will last.

But the turn will be welcomed by millions concerned about their energy bills this season.

There’s a range of factors at play in the reduced gas price. With temperatures milder than expected due to what the UK’s Met Office calls an ‘African plume’, many households have postponed switching on their heating.

This has helped to maintain supplies at gas storage facilities. Soaring energy bills are also acting as a deterrent, even on colder days.

And last week, EU leaders agreed on a mechanism to reign in the most extreme cases of volatility and speculation at the TTF. It’s not the broad price cap that some countries sought, but will act as an emergency ceiling to stop the bloc being exposed to uncontrolled prices.

Gas prices began to drop within hours of the consensus being reached, inews reports, well into Monday.

Though utility firms have been accused of being too slow to pass on savings in the past, there are signs of the market getting more reactive to protect consumers.

Ofgem, the UK’s energy regulator, recently switched to making quarterly adjustments to its price cap (the maximum amount consumers can be charged per unit of energy).

So that should mean that households more quickly feel the benefit of lower wholesale prices.

The country’s National Grid, responsible for distributing electricity and gas, warned earlier this month that people could face a series of three-hour power cuts if a cold snap and reduced supplies conspire to make this necessary.

EU member states are also preparing for this ‘worst-case scenario’, which is looking less likely for now.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Hungary Ranked Among the World’s Safest Travel Destinations for 2025
G7 Leaders Fail to Reach Consensus on Key Global Issues
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
×