Several Estonian gas sellers stop offering fixed-price contracts

Natural gas seller Eesti Gaas has stopped offering private customers fixed-price packages as a result of a fickle market situation. Estonia's national energy company Eesti Energia has stopped offering natural gas contracts altogether. Alexela continues to offer fixed-price contracts at a high price.

Eesti Gaas gave instability following Russia's war in Ukraine as the reason it's dropping fixed packages.

"A changeable market situation would make fixed-price agreements insensibly expensive, which is why we recommend our customers get flexible packages where the price changes with the market. The price of gas would need to stabilize before we could return to offering fixed prices, while no such development can be seen today," Kersti Tumm, press representative for Eesti Gaas, said.

"We continue to offer fixed-price power contracts, while high prices mean customers also tend to prefer flexible contracts that are based on market price in the case of electricity," Tumm added.

Eesti Energia said that while sale of natural gas is not their main business, they have some 4,500 Estonian customers.

The national energy giant is not signing new contracts at this time as it cannot guarantee delivery.

"When we sign a customer contract, we want to be sure we can buy enough gas for them for the entire contract period, Eesti Energia press representative Priit Luts told ERR.

Private customers still have access to fixed-price gas contracts from Alexela and 220 Energia.

"We have never stopped offering both fixed and market prices to our customers. While the gas market situation is tense, it is still possible to stockpile natural gas, which is why we can offer fixed prices to customers," said Kalvi Nõu, head of energy trading at Alexela.

He said that the situation is more complicated on the business customers front where volumes and risks are greater.

Alexela, that is involved in the project to give Estonia the capacity to handle LNG, is reassured by recent success found in talks with the government and transmission system operator Elering.

"The signals we are receiving concerning LNG are promising. We understand that Alexela's offer for the LNG terminal – a complete solution – has been accepted. This gives us great certainty in that we are fast moving to where all gas consumers and the market want to be. Supply security, risk management and stable regional prices," Nõu said.

Alexela offers a fixed price of €1.5 per a cubic meter of gas, while 220 Energia charges €1.488.


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Editor: Marcus Turovski

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