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.
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“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.
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