In Europe the levels of gas storage is an at an all-time high which resulted in wholesale market prices to fall to levels prior to Russia's invasion of Ukraine - but does that mean that the energy crisis is over?
Well according to Tomas Marzec-Manser, head of gas analytics at ICIS, we're far from this being the case.
“Is the energy crisis over? No. I would say that we’re managing the crisis. But the wider economic picture has become its own beast. Even though gas is more affordable there is still a diminished demand for products due to the cost of living crisis, which means industrial gas demand has not yet recovered. ”
The article in The Guardian discusses how falling gas prices across Europe has given a misleading sense that the energy crisis is over.
Despite these lower prices, there are several underlying issues that still persist. Europe's energy security remains fragile due to dependence on liquefied natural gas (LNG) and the potential for supply disruptions.
The transition to renewable energy is progressing, but slowly, which leaves us vulnerable to price volatility. Additionally, the economic impact of high energy costs continues to affect households and industries across Europe, highlighting the need for long-term energy strategy adjustments.
Source: You can read the full article at The Guardian.
The Honest Opinion
"One of the big reasons it could take over a decade to see further decreases to energy costs is due to continent-wide diminished demand. Consumers at home and in business are saving energy wherever possible because of the high rates the energy crisis brought about. This means that suppliers are losing money because they shelled out in advance, but now the energy is not being consumed at the same levels it once was. We believe in being proactive, not reactive and our clients are given the insights necessary to weigh the pros and cons of when to secure."
Arran Quinn, Corporate Account Manager and Energy Consultant at Honest Utility Group
At Honest Utility Group our team will look help you secure the best available rates and terms on your energy contracts. You can reach our team by phone on 0191 7208 238 or by email at info@honestltd.co.uk
