Eesti Gaas to reduce natural gas prices by €1 in December
Estonian energy company Eesti Gaas will be reducing the price of natural gas to €1.85 per cubic meter in December, down from €2.85 per cubic meter in October and November.
The price cut will apply to its flexible plans; since early September, Eesti Gaas has not offered fixed-rate plans to its clients.
The company's flexible plan is essentially somewhere between a fixed rate and a market-rate plan, as the price is determined based on a client's consumption and long-term market trends for an indefinite period, thus offering more stability by smoothing out short-term price fluctuations.
The seller retains the right to unilaterally change the price of natural gas with 30 days' advance notice.
Natural gas prices have fallen significantly on both the European and global markets. This week, the price of gas on the European futures market dropped below €100 for the first time since June, plunging three times lower than its peak in August; on August 26, the price of natural gas futures reached nearly €350 per megawatt-hour.
From October through the end of March, the Estonian government will be compensating household consumers 80 percent of the monthly average price of gas exceeding €80 per megawatt-hour exclusive of VAT.
Follow ERR News on Facebook and Twitter and never miss an update!
Editor: Aili Vahtla