Estimates that a cap on the price of fuel would lead to rise in prices was proven wrong following a 80% drop in the international price of natural gas in early 2023 from the record high set in August 2022.
The price of natural gas on the Dutch stock exchange (TTF) fell in early 2023 to the level of 75 euros per megawatt hour (last week it fell below 65 euros), lower than the period before the Russian invasion of Ukraine, while last August it had exceeded 340 euros.
A significant drop has also been recorded since December 19 when it was decided to impose a cap with the price fluctuating at 110 euros per megawatt hour.
A favourable environment for holding prices down was also created by a number of other factors, including:
- The seasonally high temperatures in Europe that led to a decrease in demand for heating.
- Ensuring alternative sources of natural gas supply, mainly with the rapid development of new Liquefied Natural Gas stations.
- The reduction in demand resulting from the implementation of energy saving programs in EU countries.
- The development of RES that replaces electricity generation from natural gas which is the most expensive source of electricity generation.
- The increased reserves of natural gas in the underground storages of Europe.
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