It feels like we’re constantly hearing about energy prices, but the situation is getting pretty intense. Because of the ongoing conflict in the Gulf, natural gas prices have shot up, and that’s causing a major ripple effect on our electricity bills.
When gas costs rise, wholesale electricity prices spike during the hours when gas is the main source powering the grid. We saw a clear example of this on September 22, when wholesale prices surged past 280 euros per megawatt-hour. This pushed the pre-tax price for household electricity all the way up to 411 euros per megawatt-hour. It’s a frustrating reality, and it really highlights just how vulnerable our current energy market is to global instability.