Since the beginning of June, the price of gas with a contract for July has gradually fallen by about 15 percent, from 94 euros per MWh to almost 80 euros per MWh on Tuesday.
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It then fell by another euro on Wednesday morning. But with a few daily exceptions, the price has been falling for a long time. It was last over 12 euros per MWh on 12 May.
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Despite the disconnection of some countries that refused to pay Russia in rubles, the market is more calm than at the beginning of the war, when fears of stopping supplies to Europe were much stronger.
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“It is a favorable development that reflects the decent pace of storage in Europe and the belief that the flow of Russian gas will continue. Continuing the decline to the level of 70 euros per MWh would encourage traders to make further purchases, “Jiří Gavor, CEO of the Association of Independent Energy Suppliers and analyst of ENA, told Novinka.
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Gas was sold around the aforementioned 70 euro (1730 CZK) mark in February before Russia invaded Ukraine.
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On the contrary, after the start of the war, the price skyrocketed and in the first half of March it even hovered up to 200 euros (4950 CZK) per MWh for several days.
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The opposite trend for electricity
However, while gas is becoming cheaper, the opposite is true for electricity. Its price on the Power Exchange Central Europe commodity exchange was 245 euros (6065 CZK) per MWh on Tuesday, and even five euros higher on Friday.
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On the contrary, a month ago, a megawatt-hour cost 227 euros (5620 CZK).
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According to Gavor, one of the main explanations for why electricity is rising is in France.
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“Electricity problems with the French nuclear power industry, half of its reactors are now out of order. Let’s hope that the situation there will improve even before the winter, “he added.
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