The price of gas is falling and now so are the bills

Gas price in Europe closed another day low: Its contract, which expired in March, is trading at 56.40 euros per megawatt hour, down 5.26% in Amsterdam’s reference centre. And finally, after weeks of decline, the price drop has reached Italians’ pockets. In fact, the gas bills of households that are not yet open to the free market and are connected to the advanced protection system are significantly reduced. Looking at the average trend of the Italian wholesale market in January 2023 and consumption in the same month, there was actually a -34.2% reduction in the bill compared to December 2022, as explained in a footnote by the Arera regulation.

“We can certainly look forward with some elements with greater optimism compared to a few months ago,” explains Stefano Besseghini, president of Arera, to Skytg24’s microphones. “Definitely a late winter and a cold period are still possible, but stocks are higher than historical average data,” Besseghini says, observing that “forecasting is always a complex exercise” and “surprises can always be present.” “Certainly – he underlines – we have already recorded a significant contraction in prices in the markets from the last ten days of December, and we somehow stopped this with the electricity bill at the end of December, and now with the January gas bill, which is an important month for gas consumption”.

Gas fell 34.2% for January bill

The supply costs coverage component (CMEMm) of the gas price applied to customers still in the protected market is updated by ARERA as the monthly average of the price in the Italian wholesale market (day-ahead PSV) and published in the first. 2 business days of the month following the reference month.

For January, when a significantly lower average wholesale price compared to December was recorded, the price of the raw material gas (CMEMm) for customers with contracts under protected terms equaled 68.37 €/MWh. . In terms of the final effects, the January discount still does not fully compensate for the high price levels achieved last year; approximately 1,769 euros, +36% over the equivalent 12 months of the previous year (February 2021- January 2022). It should be noted that, in accordance with the ‘Budget Law’, ARERA has reset the general system fees for gas for the first quarter of 2023.

The negative UG2 component for gas consumption up to 5,000 sm3/year and a 5% VAT reduction on gas were also confirmed.

And now Europe is asking governments to reduce aid for bills

Source: Today IT