myenergy.beEnergy prices for September will again break all records. analysis myenergy.be Based on developments in energy exchange, this indicates an increase in energy costs of approximately 35 percent, and up to 42 percent for natural gas. Now that the majority of consumers have a variable contract, this new price increase will be felt almost immediately in many families.
Written by Kurt Demann, in association with mijnenergie.be
There will be no end to the high prices of electricity and natural gas. Uncertainty over Russian supplies continues to stoke sentiment in the natural gas market. Maintenance work on Norwegian gas infrastructure and the delayed restart of a major US LNG plant are also contributing to the price increase.
Warm temperatures in the past week have driven up demand for air conditioners, while a lack of wind has limited renewable energy production. In addition, the uncertainty surrounding the future availability of French nuclear power plants, the lowering of the water level of the Rhine and the rise in carbon dioxide.2– Emission prices contribute to unfavorable electricity price developments.
Electricity is more than a third more expensive
The average monthly price for August on the energy exchange platform Belpex is €432.94 per megawatt-hour (MW), compared to the July average of €321.33. When we translate this into annual prices for one of the most popular energy contracts on the Belgian market, the price of the energy costs component rises from €1318.10 to €1754.90, or a third more. With an average annual consumption of 3,500 kWh, the total annual bill, including network costs, fees and VAT, rises to 2,260.88 euros.
The price of natural gas: more than 3,500 euros per year
Natural gas prices on the leading Dutch TTF exchange have exceeded the 300-euro-per-megawatt-hour limit several times in recent days. By way of comparison: a year ago, energy companies traded natural gas at 26 euros per megawatt-hour.
The consequences for the consumer are inevitable. The average price on natural gas exchanges rose 41.93 percent in August. While the annual price for one of the latest contracts, including all network costs, fees and taxes, was still 2,609.21 euros in August, it jumped to 3,537.41 euros in September.
Results can be felt immediately
Due to the fact that only one supplier offers a fixed rate formula, more and more families have a variable rate contract. In this case, the contract automatically follows the evolution of energy markets on a monthly or quarterly basis. This means that the majority of consumers cannot escape the new price increases. Those with a permanent contract can rest on their laurels for a while. Although many of these obligations will soon expire now.
Choosing a fixed price?
Luminus is the only company that still offers permanent contracts to new customers and extensions to existing contracts. Electricity prices today are close to the expected monthly variable prices for September. Those who prefer certainty and don’t want to expose themselves to a possible price hike this winter, might do well to sign up for it in August. After all, these fixed prices for new customers are also expected to increase from September 1.
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This article was brought to you by our partner Mijnenergie. MijnEnergie.be is an independent energy price comparison of electricity and gas offers.
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