- Gas expert: Price increases are not coming from households
Gas prices in wholesale market rise after Ukrainian counteroffensive against Russia, but unlikely to impact consumer prices, says energy expert Malte Küper.
Following the Ukrainian counterattack on Russia, wholesale gas prices have increased, but energy expert Malte Küper expects this to have no impact on consumer gas prices. "If we're seeing price fluctuations that will only last a few weeks, it won't affect the prices households pay for gas," Küper told Deutsche Presse-Agentur dpa. The reason is the long-term purchasing strategy of energy supply companies. Küper is a referent for energy and climate policy at the employer-associated Institute of the German Economy (IW) in Cologne.
Gas price reaches nearly 43 euros on Monday
The important gas transit station Sudzha, located in the Russian region of Kursk and currently under Ukrainian control, is a crucial point for Russian gas exports to Europe. Since the attack, the price of a megawatt hour of gas at the Dutch TTF trading hub has been steadily increasing. On Monday, the price for gas to be delivered in September reached a high of nearly 43 euros per megawatt hour, a level not seen since early December 2023.
Küper attributes the rise in wholesale prices mainly to market fears of accidental damage to the Sudzha station due to combat operations, such as a rocket strike. "I can't see a Ukrainian interest in disrupting supplies now," he said. If the station were to be damaged, Austria could potentially be supplied with gas via Germany and Italy.
Industry more affected by price increase than households
If the current price increase persists, Küper believes that industry will be more affected than households. This is because industrial companies, due to their different procurement strategies, often feel price fluctuations on the stock market more directly or earlier than households. Additionally, even small price differences can have a greater impact on energy-intensive industrial operations than on households.
TTF Exchange Gas Price
The rise in wholesale gas prices could potentially impact industries more heavily than households within the European Union, as explained by energy expert Malte Küper. Due to their procurement strategies and energy-intensive operations, industries might feel the effects of market fluctuations more acutely.
Given the critical role of the Sudzha station in Russian gas exports to Europe, any potential damage to the facility could pose challenges for energy supply companies operating within the European Union.
