Suppliers will need to purchase more natural gas from the exchange this year compared to last year. At the key European trading hub TTF in the Netherlands, prices have climbed above 55 euros per megawatt-hour, marking a significant increase from the end of last year. Industry experts suggest this upward trend is likely to continue.
According to Jiří Gavor, an analyst at ENA, “Unless something fundamental changes, gas price levels will be noticeably higher in 2024 than in 2023, which will inevitably affect consumer prices.” However, he notes that current market offers remain favorable, benefiting from lower exchange prices during the first half of last year.
For households, the recommendation is straightforward: those not bound by fixed contracts should consider securing one of the existing fixed-rate offers, preferably for one to two years. This advice is echoed by Lukáš Kaňok, director of the Energy section at Kalkulátor.cz, who suggests locking in rates while prices hover around 1,100 CZK per megawatt-hour before tax.
The price surge is attributed to several factors, including increased European consumption and significantly lower storage levels compared to previous years. The shift away from Russian pipeline gas to LNG has also contributed to higher costs, as liquefaction, shipping, and regasification processes are more expensive than traditional pipeline transport.
Experts predict that prices will continue to rise, particularly in the second half of the year, with relief not expected until 2025 or 2026. For consumers, this means acting quickly to secure current rates before inevitable price increases take effect.