The energy bill threatens to be a tough bill for at least a few months. After all, the market assumes that electricity and gas prices will remain very high for six months and more.
Natural gas and electricity prices are currently at historically high levels. The general boom in commodity prices, combined with historically high CO2 prices and higher demand due to the economic recovery, is causing a huge price hike, says Matthias Determmey, electricity trader for energy supplier Elindus.
For example, the average price of short-term market electricity in the holiday month of July was more than 76 euros per megawatt-hour: just below the highest price in November 2018 and the most expensive July for electricity ever.
But traders are also seeing a slight improvement in the coming months, on the contrary. If you buy electricity today which will be delivered in September, you will pay €100/MWh on the wholesale market. In the first quarter of next year, that will be 108 euros per megawatt-hour. Only in the summer of 2022 the market will see prices fall somewhat.
The situation is more dangerous for natural gas. For example, more than 45 euros / megawatt-hour is charged in the short-term market: an absolute record, and this is in a period when households almost do not use gas.
Extremely high prices in wholesale markets also end up in energy bills for households and businesses. Especially those with a variable contract are more likely to feel this in their wallet.
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