Energy supplier Eneco is lowering the energy tariff today, competitor Vattenfall plans to do so in a month. This seems like good news for many households, but prices are still above the agreed ceiling. Still, that price cap is still needed, thinks public affairs energy economist Hans van Cleef: “It gives relief to the consumer.”
Meanwhile, both the price of gas and the price of electricity have fallen significantly in recent times. That’s mostly due to the relatively mild winter, says Van Cleef. “As a result, we have been able to replenish gas supplies well and prices have come down.” Van Cleef suspects this decline will continue for some time to come.
Risks
“But not all the uncertainties have disappeared,” warns the economist. The situation in China is a risk. When that country’s economy recovers, the demand for energy will also increase. Van Cleef thinks that a lot of LNG – liquefied gas – will then go to China instead of Europe. “This could give us upward pressure on prices,” explains the energy economist.
The first data from China will not be known until April and May. Until then, energy and gas prices will continue to fall, Van Cleef thinks. There is a risk that energy prices will rise again towards the summer. “But we have to wait and see what the data on China’s economy tells us,” the energy economist said.
Price limit
Still, it’s important that energy giants like Eneco and Vattenfall now offer lower prices, says Van Cleef. ‘These types of large parties buy a little earlier, so prices go up less quickly, but also go down less quickly. This also explains why prices are still above the maximum price.
“Let’s hope the politicians find a solution in time”
At the beginning of 2024 the price cap will end and it will be necessary to evaluate whether to extend it. If it’s Van Cleef’s turn, not everyone needs the price cap. ‘There are homes that suffer from energy poverty, but they also often struggle to pay other bills. So I think that to correct it you should look at your income rather than your energy bill,’ explains Van Cleef. “This is something that should be discussed by politicians and hopefully a solution will be found in time.”
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
