Unusual situation

Why gas prices are rising so sharply now

The European gas market, where prices are currently relatively high, is currently experiencing a rather unusual situation: wholesalers who buy gas for the coming summer have to "pay" more than for next winter.

The price of gas is actually cheaper in the warm months than in the cold season. E-Control boss Wolfgang Urbantschitsch explained on "Ö1-Mittagsjournal" that gas prices could be adjusted in line with demand by relaxing the storage regulation.

The price of natural gas recently rose to its highest level for around two years. However, distortions on the gas market are also to be expected in the coming months. Although demand is lower in the summer months, higher prices are currently being demanded on the European gas markets for these months than for next winter. This is due to the regulations for gas storage facilities. The lower temperatures are currently leading to higher gas consumption and gas reserves are falling - in Austria to around 58 percent of storage capacity at present. In the warmer months, however, the gas storage facilities must be refilled, Urbantschitsch explained the current price development.

Easing requirements for gas storage facilities
The head of E-Control nevertheless spoke out against a European gas price cap. On the one hand, attention should be paid to where gas could be saved. On the other hand, the EU countries should reconsider their specifications for storage levels. "If you set slightly more generous deadlines here, if you do the math again: How much gas actually has to be in the storage facilities and these specifications are not too strict, there could be some relaxation," said Urbantschitsch.

In any case, Urbantschitsch expects the gas price to ease next year. This is because there should then be even more gas on the market. Thanks to fixed prices, most consumers will not notice the current price trend. The price increase is only immediately noticeable in contracts that are based on wholesale prices.