The price on the European gas market fell below 100 euros per megawatt hour this morning, the lowest level in more than three months. That was last the case at the beginning of June.

In August, the gas price hit a record high of almost 350 euros. According to analysts, the decline that started at that time is due to the fact that European gas reserves are well filled. And due to the mild autumn weather, there is also less demand for gas.

The fact that the gas price has hit the 100 euro mark does not mean that gas will become cheap again. Before the price started to rise in 2021, it had been below 30 euros per megawatt hour for years.

“Limits of our system”

“You’re seeing a sharp drop now. At the same time, the price is still five to six times higher than in previous decades,” says energy expert Jilles van den Beukel. “If you look at the average price for this winter, you’re talking about 150 euros.”

Van den Beukel expects the price to remain quite high without Russian gas. “Also, the price goes up and down. This is because we are at the limits of our system in terms of import and storage capacity. And you can see that now.”

electricity bill

Consumers see some of this price drop in their energy contract. Although according to Van den Beukel this is limited. This is mainly due to the fact that energy companies buy gas with different types of contracts. Sometimes these are contracts based on daily prices, in other cases monthly or annual contracts.

“On average, consumers see this in their bills: energy companies do not calculate the market price 1 to 1. It is not like the price of oil, which you see in the price of petrol at the pump a week later.”

A more important question, according to the analyst, is what will happen in the long term. The weather plays an important role in this. “If it stays mild this winter, it will be reflected in the energy bill.”

Gradually lower

Some energy companies are gradually reducing prices. At Eneco, for example, the variable rates for November are 6 to 7 percent lower than in October.

Essent and Vattenfall, which together with Eneco hold more than three quarters of the energy contracts, do not yet dare to make any forecasts for their new tariffs in January.

“We buy the energy for our customers well in advance, so lower purchase prices are only reflected in consumer tariffs a few months later,” says a Vattenfall spokesman.