Gas and electricity bills could increase in Europe this winter if wholesale prices remain elevated long enough to feed through to consumers.
The benchmark European wholesale natural gas price, the Dutch front-month TTF, was trading at over €66 per megawatt-hour (MWh) later on Tuesday, down from above €68 earlier in the session. This compares with around €29/MWh at the beginning of the year.
The rally has been fuelled by growing investor concerns that the Strait of Hormuz could remain closed into the winter.
This comes at a time when the EU’s gas-storage levels remain historically low ahead of the heating season.
EU gas storage was 62.99% full at the end of the gas day on 24 August, according to data from Gas Infrastructure Europe.
