Low European gas prices ‘will benefit’ energy consumers in Denmark

European gas prices have dipped to their lowest level since November 2021, meaning Danish consumers could see lower bills than previously expected.

Low European gas prices ‘will benefit’ energy consumers in Denmark
The price of gas in Europe has dropped and the effect is expected to be felt by energy consumers in Denmark. File photo: Mads Claus Rasmussen/Ritzau Scanpix

The price of gas on the European exchange was recently reported to be at its lowest level since Russia in February last and it is now necessary to go even further back to November 2021 to find a lower price, Danish finance media Marketwire reports.

Lower exchange prices in Europe will benefit consumers in Denmark, an analyst said.

“The many consumers who use gas to heat their homes are certainly feeling the effects. But the rest of us can actually also feel it in the form of lower electricity prices,” Søren Kristensen, senior economist at Sydbank, told news wire Ritzau.

“It’s actually quite a big boost to the personal finances of some of those who have been hardest hit over the past year,” he said.

An unusually warm winter and resultant lower consumption of gas than usual can be credited for the falling price of fuel, according to Kristensen.

READ ALSO: Why many Danish households aren’t affected by high energy costs 

“Another factor is that we have been very good at keeping gas stocks high. So we actually have – very untraditionally for the end of December and start of January – seen that German gas stocks have increased,” he said.

Not all consumers will see the drop in the exchange price immediately transfer to their bills, however.

A transfer of the exchange price to that paid by the customer will depend on the type of deal they have with their electricity or gas provider.

“Many people will be seeing it already and a lot of the people who have variable electricity prices have noticed for some time that prices have fallen and fallen,” Kristensen said.

Although they are at their lowest level for over a year, gas prices remain eye-wateringly high compared to historic levels.

On January 4th, a megawatt-hour of energy cost 64.83 euros, more than triple the price at the beginning of 2021 according to Marketwire.

Nevertheless, Wednesday’s rate represented a 10.3 percent drop in price compared to Tuesday.

READ ALSO: Fixed or variable price: Which electricity plan to choose in Denmark?

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.


Denmark and Germany announce plans for hydrogen pipeline

Germany and Denmark will work together to construct a pipeline to transport hydrogen between the two countries, ministers announced on Friday.

Denmark and Germany announce plans for hydrogen pipeline

Danish climate minister Lars Aagaard and German counterpart, Minister for the Economy and Climate Robert Habeck, briefed press on Friday after signing a declaration which could see a hydrogen pipeline between the countries completed by 2028.

“A big thank you to Germany when it comes to questions of energy and climate,” Aagaard said.

“We have the same interests in so many areas. Today we are taking it one step further,” he continued.

The declaration means the countries will work on an underground hydrogen pipeline between the Danish region of West Jutland and northern Germany.

The agreement sets out the general framework for the plan and who will lead it, according to Danish news wire Ritzau.

A Danish-German partnership over a hydrogen pipeline can be seen in a broader context of the Danish government’s plans relating to Power-to-X technology.

Power-to-X is the process by which electricity and water are converted into hydrogen using electrolysis. The hydrogen which is produced can be used as fuel in a number of ways, including as power for ferries, trucks and industry.

An agreement passed by the Danish parliament last year aims to build electrolysis capacity in the Nordic country to 4-6 gigawatts by 2030.

Germany already uses a large amount of hydrogen in its industry and will eventually need to convert from fossil fuel-produced hydrogen to hydrogen produced from sustainable sources such as wind and solar.

Demand for hydrogen power in Denmark is currently more limited.