Von der Leyen: "Gas prices skyrocket, EU examination of the entire energy structure"

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06 October 2021 The surge in energy prices "is a serious problem, gas prices are skyrocketing" and Brussels intends to present "a communication next week" in which "we will examine the entire structure of energy prices". This was stated by the president of the EU Commission, Ursula von der Leyen, upon her arrival at the castle of Brdo, in Slovenia, for the second day of the summit between EU leaders and their counterparts from the Western Balkans.

"For us it is very clear that in the long run it will be important to invest in renewables that give us stable prices and more independence", added von der Leyen, explaining that the EU proposal will be discussed "in due course" at the summit of the leaders of the Twenty-seven on 21 and 22 October in Brussels.

"90% of gas is imported into the European Union", recalled the president, "while in renewables we are the leaders in production".

Gas prices in Europe hit new highs. Wholesale prices in Dutch and UK hubs extended records, due to the rally in energy markets, forecasts of more moderate wind and colder temperatures helping to drive up demand with supply remaining scarce. 

On the Dutch gas exchange (Ttf) futures contracts are trading at 145 euros per megawatt hour after having jumped to 162.25 euros (+ 40%). On the British stock exchange, the British thermal unit of natural gas (Mmbtu), corresponding to over 28.26 cubic meters, jumped 39% to 407.82 pence, equal to 4.79 euros. On the US stock exchange, futures contracts for November reached a maximum of 6.43 dollars (5.57 euros) for Mmbtu at 9 this morning, before falling to 6.38 dollars (5.53 euros), reducing to 1.08% the increase on the previous close of 6.31 dollars (5.51 euros) at Mmbtu.

At the root of the jump in prices, fears that gas stocks may not be sufficient to face the winter season.

A circumstance that yesterday prompted the President of the European Commission Ursula von der Leyen to call for the creation of a "European strategic reserve".

The problem, reports an expert in the sector, concerns Northern Europe more than Italy, which can instead count on "robust reserves" of natural gas, thus remaining sheltered from the volatility of prices, which for next spring are expected to sharp decline with values ​​down to 130.85 euros per MWh in May and 54 euros in April.