The growing resolve of European officials to find solutions that could contain gas prices is already producing results, as highlighted by a significant price reduction of just over 30 percent over the past week.
Germany appears to have changed stance by joining EU member states of the south in their call for a cap on natural gas, now being examined by the European Commission following a delay of many months.
Germany’s public admission that a single European solution is needed to counter the energy crisis, an acknowledgment coming after the country previously blocked proposals forwarded by Europe’s south, has swiftly impacted energy markets.
Yesterday’s news of a new Russian gas supply disruption through Nord Stream I, under the pretext of maintenance requirements, did not prompt a further increase in gas prices, as would be expected, but, instead, resulted in a price reduction. The TTF index fell yesterday to 239 euros per MWh, down from a record level of 346 euros per MWh on August 26, a 31 percent drop over the one-week period.
This reduction has filtered through to today’s wholesale electricity prices around Europe. They fell to 635 euros per MWh in France, 571 euros per MWh in Germany, 661 euros per MWh in Italy, and 582 euros per MWh in Greece and Bulgaria. The price level for Greece is approximately 100 euros lower compared to yesterday.