Understanding Energy Prices: Trends, Analysis, and Fixing Strategies for 2022

The Pedlos autumn showed very vividly that it is not worth underestimating energy prices. The rocketing increase in the price of electricity and gas in 2021 and their turbulent development made life difficult for those who did not have a contractually fixed price. However, various dreams have not been fulfilled and energy prices are falling this year. According to experts, however, there is no room for further price declines, and for households, they are on the verge of a short-term fixation. It has been possible to fix the price for liquid propane since last year. The prices of electricity power at the stock exchange have stabilized this year at around 3400 K/MWh. Compared to the previous period, it is a decrease, but even so, the prices of electricity are roughly three times higher than in 2020. Natural gas prices also decreased, and LPG itself became cheaper. The final price of certain propane delivered to the storage room is now around 2400 K/MWh. Propane is characterized by price stability, because its supply has never been increased in Russia. Also for this reason, the price of heating LPG in the last crisis period never exceeded the government price ceiling, which had to be set for natural gas, explains Ji Karlk, general editor of the company Primagas. Even after the decline in the price of energy commodities on the stock market, the prices of electricity and gas are still relatively high. According to a recent analysis by the company Next Finance, if we calculate the purchasing power parity, we will quickly find out that the price of electricity is the second highest in Europe, after poor Romania. In gas prices, we even reached a record in the second half of last year. Last year, they paid the most for natural gas in Europe in terms of purchasing power. Such high prices mainly had two big effects that motivated Czech households to eat, they pushed them to switch to solid fuel and in some cases to LPG, which is otherwise important especially for non-gasified locations. That is why it should be appropriate to fix the price of energy at the closest analogue to the first one. The energy supplier at bn offers products with the option of fixing the price below the government ceiling. Economist tpn Keek recommends one-year fixation, because prices can go down more in the fifth year. Those who agree on an interesting offer will fix me for a long time. However, a suitable strategy should be the choice of any supplier who buys energy commodities with sufficient advance and thus protects his order from short-term price fluctuations. The LPG supplier now has to fix the price. At the present time, it is possible to fix the price of LPG for the next two years, currently at around 2.4 K/kWh. It is the final price including VAT, transport and distribution fees, explains Ji Karlk, with the fact that the propane price can be fixed by the consumers in the period from May to August, when the price of LPG is not the same. Among LPG suppliers, in the segment of end consumers, households are a complete novelty, with about a tenth of Primagas’ orders used for water. Heating with liquefied propane has always been important, especially in locations without a natural gas distribution system. Pestoe is relatively densely gasified, they are regions and locations where it is still not possible to install a gas connection. According to the Czech Statistical Association, the largest municipality without gas distribution is ve Stedoeskm a Southern regions. Thanks to price stability, two LPG units in combination with renewable energy sources always make economic sense even in gas-fired locations. Installing a propane tank is often an economically viable alternative to building a completely new natural gas connection. LPG has pretty good prospects even in the context of the energy industry. In many countries, it is gradually being replaced by green alternatives in the form of bioLPG and renewable dimethyl ether (rDME), using existing infrastructure and consumption.
2023-08-17 09:57:22
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