Prices for energy and commodities are rising, there is talk of a ceiling. Heating with wood remains the cheapest iRADIO

Separating gas prices from energy prices across Europe – this is the way to quickly reduce rapidly rising prices, according to Industry and Trade Minister Jozef Síkela for the STAN movement. He called an extraordinary European energy council for next Friday. The prices of most commodities are rising: gas, coal, oil, but also wood.



ENERGY FOR ANY MONEY
Prague
18:54 September 1, 2022

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Energy prices in the Czech Republic continue to rise Photo: René Volfík | Source: iROZHLAS.cz

At the beginning of the week, the price of electricity climbed above the threshold of one thousand euros per megawatt hour, which translates to almost 25 thousand crowns. It is currently hovering around the 600 euro mark per megawatt hour, which is due to the market’s reaction to the planned European negotiations, but also to the shutdown of the Nord Stream gas pipeline to Germany, which began on Thursday.

How and why are energy prices rising in the Czech Republic? Listen to Barbora Kladivová from the economics editor

The price of gas also fell, hovering around 250 euros. This year, the price of gas in Europe increased fifteenfold, reaching the threshold of 300 euros per megawatt hour. At the same time, last year it was sold for around 20 euros. Politicians want to moderate prices by partially capping them.

“We would like to follow the path of partially separating the price of gas from electricity. We don’t want to completely separate those markets, but to remove gas from the system for the production of electricity,” says Minister of Industry and Trade Jozef Síkela for STAN. An extraordinary meeting in Brussels is scheduled for September 9.

According to Radim Dohnal, an analyst at Capitalinked, prices could be reduced in another way by then: “The demand for unnecessary consumption, such as the intervals of public transport or trains, could be reduced.”

It also makes wood, coal and oil more expensive

The main reason for the increase in prices is the Russian invasion of Ukraine, the limitation of supplies of raw materials from Russia and, according to Síkela, the bad situation with nuclear power plants in France.


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The impact on household gas bills will be enormous, those who cook and heat with gas will pay tens of thousands of crowns more year-on-year.

The prices of wood and coal are also rising, almost doubling year-on-year. The price for a cubic meter of wood has already reached a thousand crowns, but even so it is still the cheapest option for heating.

“The price of coal has increased by 170 percent since the beginning of the year and is holding at $350 per ton. In recent years, however, they have remained around one hundred dollars. Looking ahead, we cannot expect a price drop in the coming months, as coal is an important substitute for gas,” explains XTB analyst Jiří Tyleček about the situation with coal.

Oil is also more expensive, but the increase is not so significant. From eighty dollars a barrel, it is currently worth a hundred.

Barbora Kladivová

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Tags: Prices energy commodities rising talk ceiling Heating wood remains cheapest iRADIO

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