The big turnaround: how Europe's gas prices fell from €300 to €35 MWh in the span of a year
One year ago, European politicians were in a state of panic watching wholesale gas prices break all-time records.
Transcript
00:00 Just one year after prices broke all records, the energy crisis in Europe seems to be over, at least for now.
00:07 Monthly household bills that ran to hundreds of euros are over for the time being, as prices have now dropped to pre-Ukraine war levels.
00:15 Experts say that while there will be some ups and downs, customers should now have a little more breathing space.
00:21 Volatility is always in the order of 5, 10, 20% fluctuation, is nothing as dramatic as we have seen and we are used to now see on the market.
00:34 We need to remember that the fundamentals are also pretty encouraging when it comes, for example, with the gas storage.
00:42 Gas storage in Europe is now full by more than 90% and the demand for gas in Europe remains reduced in the order of 20% vis-à-vis the pre-crisis level.
00:55 A year ago gas prices marked their record high, reaching 300 euros per megawatt hour, while gas storage facilities were at 79%.
01:04 This August the situation is much better, with prices at 34 euros per megawatt hour and storage facilities almost full.
01:12 And that should allow governments to change course.
01:15 So while last year governments have jumped into this field by subsidizing energy bills for all, it is now very important not to do that anymore,
01:27 because we are not in the middle of a crisis, but to be very selective and provide targeted support to the most vulnerable in society.
01:35 Surprises can't be ruled out this coming winter, but right now observers expect the situation to get better,
01:41 as the EU deepens its energy transition and moves away from its dependency on Russian gas.
01:47 [WHOOSH]
01:50 (whooshing)