Natural gas price falls to Estonian state support threshold level
The price of natural gas on international markets has fallen to €80 per Megawatt hour, a significant level in Estonia since it is the cut-off point, below which state support to consumers does not apply.
Under energy price support measures introduced in September, ahead of heating season (traditionally October to March inclusive), the state compensates 80 percent of the average monthly gas bill to a consumer, in that component of the bill where prices exceed €80 per MWh.
Market leader Eesti Gaas in December offered domestic customers gas a flexible package set at €1.75 per cu m, compared with €2.85 per cu m charged in November.
Since then, the price of natural gas has been falling on the Dutch Title Transfer Facility (TTF) natural gas market. Whereas in mid-December the level was €130 per MWh, by mid-week last week, prices had fallen to €100 per MWh, and to the current figure of €80 per MWh as of 7 a.m. this morning, Tuesday.
Relatively mild winter conditions in the latter part of December have played a role in the falling price.
Similar state support measures are in place for electricity and district heating bills. Since both energy sources, in particular district heating (hot water centrally controlled and piped into many apartment buildings), which often uses natural gas as a fuel, the fall in natural gas prices may affect prices in these areas also.
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Editor: Andrew Whyte, Karin Koppel