Domestic gas prices to rise again
Eesti Gaas and Alexela will further raise their prices in July, justifying the move with increased demand due to warm weather and ongoing geopolitical tensions.
A cubic meter of gas in Eesti Gaas' home consumer flexible package cost 42 cents in May, rising to 49 cents in June. The company has now announced the price will further increase to 59 cents per cubic meter in July.
"The price of natural gas is back to pre-war levels. New supply routes from the West are in place, and European gas storage has managed to accumulate more gas than last year. The current summer price rise is being driven by higher energy demand as a result of the warmer weather and continuing geopolitical tensions more broadly," said Margus Kaasik, Eesti Gaas board chairman.
The warmer weather has increased the demand for cooling systems. Additionally, Scandinavia's hydro reserves are relatively low and electricity production requires more gas. There is also planned maintenance work underway in Norway.
Alexela customers wll also have to pay out more. As of June 1, the company raised the price of natural gas to 0.449 euros per cubic meter, and from July 1, it will match competitors at 59 cents.
"The reason for the price rises is due to the increase in the Dutch Natural Gas Exchange (TTF). This price index is the basis for most LNG contracts," said Alexela's media relations expert Karl Kaur.
Kaasik said, looking further into the future, there are still reasons to be optimistic.
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Editor: Karin Koppel, Helen Wright
