Energy prices in the EU continue to fall
Energy prices in the EU continue to fall

15 February 2024 – Energy prices in the EU have continued to fall. Natural gas prices were recently at the same level as in autumn 2018 and at their lowest level since June 2023. Electricity prices were also more than 60% lower in December 2023 than in the previous year. And industrial production in the eurozone is growing again.

Energy prices in the EU continue to fall

The much-cited Dutch TTF Natural Gas prices have fallen again and, at EUR 25.75 per megawatt hour, were at their lowest level since June 2023. The short peak phase between July 2021 and March 2023 thus appears to have finally passed. Natural gas prices are therefore currently back at the level seen in fall 2018. The price of natural gas could fall even further in view on the United States and an upcoming decision on gas exports.

Wholesale prices for electricity have fallen significantly

And even though wholesale electricity prices are still at an elevated level due to significant irregularities in price distribution in Europe, the minimum price for electricity in the EU was just EUR 15.80 per MWh in September 2023, for example, the lowest level since December 2020.

The comparison of December 2022 with December 2023 even shows that electricity prices have fallen by more than 60% compared to the same month of the previous year.

Liberalization and more individual responsibility needed in the energy market

An adjustment and further liberalization of the European energy market is urgently needed to compensate for this imbalance in regional energy costs and to prevent billions in subsidies from being squandered on large customers from the steel industry, for example, who apparently cannot or do not want to negotiate their own energy prices – if they have so much power and influence over member states and Brussels, their own negotiating skills at the entrance to the energy suppliers seem to be forgotten here. We have seen more than once that people in Brussels like to abuse their power.

Industrial production in the eurozone grows

Industrial production in the eurozone increased by 1.2% in December. There was also an increase in the number of people in employment, which was stronger than expected in the fourth quarter of 2023. The HCOB Purchasing Managers’ Index climbed to a six-month high in January 2024, although there is still room for improvement. Companies’ growth expectations thus rose to their highest level in 9 months.

“If the eurozone as a whole is experiencing growth, then it’s time for Berlin to finally get off its butt and not just spout fine-sounding words,” said Thorsten Gerber, CEO of the Gerber Group, today.

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