Energy prices are rising: what impact for your wallet?

Energy prices are rising: what impact for your wallet?

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 problems with gas supply, 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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How are ‌gas prices influencing electricity prices ‌during ‌the current energy ⁢crisis?

**Interview with‍ Damien Ernst, Professor at the University of Liège**

**Host:** Good afternoon, everyone. With us today is ​Damien Ernst, a professor at the University ‍of‍ Liège, ‍to discuss the ⁣recent surge in electricity ⁢and gas prices. Damien, thank you​ for joining us.

**Damien Ernst:** ‍Thank you for having me.

**Host:**‌ To ⁣start, could you‌ explain what has been driving the recent increases in​ gas‍ and electricity prices?

**Damien Ernst:** Certainly. ⁣The primary factor⁣ contributing to these increases is the particularly unfavorable ⁤weather conditions ​we’ve ​experienced‍ from mid-October to mid-November. We’ve ⁢had⁤ very little wind, which means‌ reduced electricity​ generation ‍from wind turbines. Simultaneously, the ‍colder climate ​has resulted in a higher heating demand,‌ leading to increased gas consumption. On top of that, ⁤we continue to face some issues with gas supply, creating an ongoing‍ imbalance between supply and demand. This has ‍resulted in the sharp rise ⁤in prices.

**Host:** So, would you say⁤ that ⁣gas and electricity prices are⁣ closely linked right now?

**Damien Ernst:** Absolutely. When there’s⁣ a lack of wind, electricity generation largely‍ relies on gas-fired power plants. Thus,‍ the price of electricity ⁤is heavily influenced by gas⁤ prices. This ‍interconnectedness‍ means that households and businesses are seeing a‍ significant ‌increase in ‌their energy bills across the board.

**Host:** ​Given this situation, should consumers be ‍worried about their energy bills as we​ approach winter?

**Damien Ernst:** Yes, the current scenario is indeed ‍worrying. With the potential for ⁤prolonged⁤ cold⁤ weather, we could see further increases in demand for gas and electricity, which ⁢may exacerbate the pricing issues. ‌It’s critical‍ for consumers to be‍ aware of‍ their energy usage⁢ and explore energy-saving measures where possible.

**Host:** Thank you, Damien, for providing such valuable ‌insights into ‍this pressing issue.

**Damien Ernst:** My pleasure.⁢ Thank you for having ⁢me.

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