Raw gas price up 50 percent in October: What does this mean for consumers in Denmark?
The price of raw gas in Denmark is up by 50 percent so far in October, appearing to bring to an end a period of stable prices.
October’s 50 percent price rise also means that the price of gas according to the Dutch gas exchange TTF has more than doubled since June, when the lowest price in 2023 was recorded.
Several factors were linked to the rising gas prices by analyst Jens Nærvig Pedersen of Danske Bank.
“For one thing, Israel’s gas production has been affected by the conflict with Hamas,” Pedersen said in a comment.
“Additionally, there are problems with the gas pipeline between Finland and Estonia, which may have been subject to sabotage.
“And finally, there’s a risk that a new strike could break out at gas production in Australian,” he said.
October’s price trend is evidence that energy markets remain volatile and can therefore easily be affected by uncertainty, he added.
Consumers need not be unduly concerned at this stage however, according to the analyst. That is because the energy supply situation remains more secure than it was in late 2022.
High gas prices can cause higher energy bills if gas is used by power plants to produce electricity, even though Denmark has relatively high wind energy production.
READ ALSO: Danish gas customers set for costlier bills as more switch to electricity
“Gas stocks are full and we have supply chains in place after a large part of trade with Russia was shut down,” Pedersen said.
“Having said that, the [energy] price is very dependent on the weather. For example, it makes a big difference if it’s windy here in Denmark,” he said.
“That’s why it can be very difficult to predict how the prices on the gas market will develop,” he said.
Monday’s price was 52 euros per megawatt hour, compared to 23 euros per megawatt hour in July.
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October’s 50 percent price rise also means that the price of gas according to the Dutch gas exchange TTF has more than doubled since June, when the lowest price in 2023 was recorded.
Several factors were linked to the rising gas prices by analyst Jens Nærvig Pedersen of Danske Bank.
“For one thing, Israel’s gas production has been affected by the conflict with Hamas,” Pedersen said in a comment.
“Additionally, there are problems with the gas pipeline between Finland and Estonia, which may have been subject to sabotage.
“And finally, there’s a risk that a new strike could break out at gas production in Australian,” he said.
October’s price trend is evidence that energy markets remain volatile and can therefore easily be affected by uncertainty, he added.
Consumers need not be unduly concerned at this stage however, according to the analyst. That is because the energy supply situation remains more secure than it was in late 2022.
High gas prices can cause higher energy bills if gas is used by power plants to produce electricity, even though Denmark has relatively high wind energy production.
READ ALSO: Danish gas customers set for costlier bills as more switch to electricity
“Gas stocks are full and we have supply chains in place after a large part of trade with Russia was shut down,” Pedersen said.
“Having said that, the [energy] price is very dependent on the weather. For example, it makes a big difference if it’s windy here in Denmark,” he said.
“That’s why it can be very difficult to predict how the prices on the gas market will develop,” he said.
Monday’s price was 52 euros per megawatt hour, compared to 23 euros per megawatt hour in July.
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