2024-11-15 12:19:00
Electricity and gas prices have been rising in recent days, and the “current scenario is very worrying”, according to Damien Ernst, professor at the University of Liège.
Gas and electricity prices are currently on the rise. On Wednesday, the megawatt hour of electricity reached its highest price level in a year. Gas has also increased.
What are these increases due to? Damien Ernst, professor at the University of Liège, answered various questions live on RTL info 1 p.m.
“This is mainly due to the fact that we had particularly unfavorable weather conditions from mid-October to mid-November. We have no wind, therefore little electricity produced by wind turbines. And a climate relatively cold, therefore a heating load which consumes a lot of gas We still have gas supply problems, so we have an imbalance between supply and demand. This causes this price explosion.
Gas and electricity are following the same upward trend?
“Exactly. Electricity, when you don’t have wind, is largely generated by gas-fired power stations. So the price of electricity depends enormously on the price of gas. This means that the bill of gas and electricity for households and businesses increases very sharply.”
Should we consider this increase worrying?
“It is worrying. We were at a price of gas and electricity of around 30 euros per megawatt hour in March. We are now at 45 euros, and if we continue to have a climate without wind, and with significant cold, we can relive an energy crisis with gas and electricity prices approaching 70 euros per megawatt hour. We are in a very worrying scenario.
Should we change contract now?
“I would tell consumers to take a fixed price contract for gas, or try lowering the thermostat in your home.”
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What are the main factors contributing to the recent surge in energy prices according to Professor Ernst?
**Interview with Damien Ernst, Professor at the University of Liège on Rising Energy Prices**
**Interviewer:** Thank you for joining us, Professor Ernst. It seems that electricity and gas prices have surged recently. What is causing these increases?
**Damien Ernst:** Thank you for having me. Yes, the current scenario is indeed very worrying. The recent spikes in energy prices can primarily be attributed to a combination of unfavorable weather conditions and supply issues. From mid-October to mid-November, we’ve experienced little to no wind, which drastically reduces the amount of electricity generated by wind turbines. Additionally, the colder climate has resulted in higher heating demands, leading to increased gas consumption.
**Interviewer:** You mentioned that the gas supply is also problematic. Can you elaborate on how this impacts prices?
**Damien Ernst:** Certainly. The supply issues we’re facing create a significant imbalance between supply and demand. With the increase in the demand for gas due to colder temperatures and simultaneous supply challenges, prices have skyrocketed. This, in turn, has a cascading effect on electricity prices, as a significant portion of our electricity is generated from gas-fired power stations.
**Interviewer:** Are gas and electricity prices following the same upward trend?
**Damien Ernst:** Exactly. The rise in gas prices directly contributes to the increase in electricity prices. When wind energy production is low, reliance on gas increases, thus linking the two pricing trends closely. This means that both households and businesses are likely to see significantly higher bills for heating and electricity consumption.
**Interviewer:** With winter approaching, should consumers be worried about these rising costs?
**Damien Ernst:** Yes, I would advise consumers to be prepared for higher energy bills this winter. It’s essential to stay informed about potential government measures to alleviate costs and consider energy-saving practices where possible. Meanwhile, the underlying issues of supply and weather need addressing to stabilize the market.
**Interviewer:** Thank you for your insights, Professor Ernst. It seems we have a challenging winter ahead regarding energy prices.
**Damien Ernst:** Thank you for having me. It’s important for everyone to stay informed and proactive.
