Wholesale gas prices fall as Europe’s plan to avert winter energy crisis takes shape
Wholesale gas prices have tumbled amid signs that European leaders’ plans to avert a winter energy crisis are taking shape.
The price of gas for delivery on Friday dropped 21% from last night’s price of 405p per therm to 320p, as the European Commission confirmed it is working on “emergency measures” and the German government said it is “prepared” for the winter.
The British wholesale gas price for delivery next week fell 9% to 350p while the month-ahead price fell 6% to 431p on Thursday.
Earlier this week the day-ahead price fell from 447p a therm after the European Commission said it was working “flat out” on an emergency package as well as examining structural reform of the electricity market.
The European Commission said on Thursday it was looking into options to cap energy prices and cut electricity demand as part of its upcoming proposals to tackle soaring energy costs.
Mechthild Wörsdörfer, deputy director general of the commission’s energy department, told a meeting of European parliament’s energy committee: “There is work on emergency measures on electricity prices. There might be also something on demand reduction for electricity.”
The European Commission chief, Ursula von der Leyen, will outline the commission’s ideas on capping energy prices in a speech on 14 September.
European countries have rushed to fill up gas storage facilities after Russia cut supplies into Europe.
Germany is among the nations most exposed to potential shortages of gas and there are fears that – if the Kremlin switched off supplies altogether – its economy could tumble into recession.
However the German economy and climate minister, Robert Habeck, said the necessary preparations for this winter had begun. “That’s why we have answers and
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