European Energy Prices Set to Rise Amid Gas Market Uncertainty
Energy prices are expected to rise by year-end due to various market factors. According to analysts, gas prices are the main risk, as Europe's storage facilities are being replenished slowly and there is uncertainty in the Middle East. Jiří Tyleček from XTB said that wholesale gas and electricity prices are significantly higher than a year ago, with low gas inventories and limited output from some power plants contributing to this trend.
Lubomír Káňa, co-founder of Electree, also expects a period of relatively high and volatile energy prices. He noted that the biggest risk is developments in the gas market, as Europe relies heavily on global LNG supplies through the Strait of Hormuz. Current gas prices include a geopolitical premium, with a price of around 60 euros per megawatt-hour (MWh).
However, analysts do not expect a sharp increase in prices. Suppliers will gradually raise prices for fixed-price contracts, and households should not fear extreme price hikes. The baseline scenario is a rise of between 10 and 20 percent under the current situation.