Why the fall in the price of gas will not necessarily be felt on your bill

Baptiste Morin, edited by Laura Laplaud
modified to

10:08 a.m., October 19, 2022

The price of gas on the markets fell significantly. At 110 euros per megawatt hour, it had not reached such a low level for four months. Abnormally mild temperatures, logistical reasons… How can this significant drop be explained? Will it be felt on the bills? Europe 1 takes stock

How to explain that the gas has reached its lowest level for four months? At 110 euros per megawatt hour of gas, we had not known such a price since mid-June. Obviously, this is still nearly 10 times its price before the health crisis, but it is also three times less than its value at the end of August when it peaked at more than 300 euros per megawatt hour. Nicolas Meylan, engineer and energy specialist, gives the three reasons for this drop.

Mild temperatures, logistical reasons…

“The first is abnormally mild temperatures and therefore, it lowers heating consumption throughout Europe. The second reason is that the economy is starting to suffer and in particular industrialists, given the prices high, consume less gas. Then the third reason is logistics. The reserves at European level are almost at their maximum.”

Will the decrease be felt on the invoices?

So are we going to feel this drop in bills? Essentially, no. Households benefit from the tariff shield, which has cushioned the rise. The drop will therefore not be more significant. As for the companies, they sign long-term contracts. Few are those who could therefore take advantage of the moment.

This Wednesday, half of the nuclear power plants are still impacted by the social movement. On Tuesday, an agreement was signed with the three main unions, but they are now waiting for the opening of wage negotiations by company. Social tensions that could have serious consequences in the heart of winter, according to the network manager. For its part, the gas branch plans a new mobilization on Thursday.