Eneco lowers gas, electricity prices by 6% from November 1

After months of price increases, energy company Eneco is decreasing its rates by 6 percent in November. Smaller energy companies are expected to follow suit, AD reports.

Eneco is the first big energy supplier in the Netherlands to allow its customers to benefit from the sharp fall in gas prices on the international market. The gas price on the TTF dropped over 60 percent since the peak at the end of August.

Eneco customers who get new rates on November 1 will pay 3.17 euros per cubic meter of gas and 79 cents per kWh of electricity. That is a decrease of 22 and 5 cents, respectively, compared to the price on October 1.

Last week, Budget Energie lowered the variable gas tariff from 2.72 euros to 2.61 euros per cubic meter.

“This is a bit of a turning point,” Martien Visser, professor of Energy Transition at Hanze University of Applied Sciences, said to AD. “It seems that prices are structurally lower. They were also absurdly high at 3 euros per cubic meter wholesale. So now you see a recovery. I wouldn’t be surprised if prices drop even further.”

The European gas price is falling because there is more supply. Tankers with liquefied natural gas are reaching Europe, Norway is boosting gas exports, and Germany is opening new LNG terminals in the coming months. The mild autumn weather also means that demand is low, consumers are more energy efficient, and the gas storage facilities are full.

Prices likely won’t fall sharply for a while yet, because the gas storage facilities are full of expensively purchased gas. Energy companies will probably sell it at high prices too.