Gas prices are set to rise in January 2025, with household cooking rates increasing from €0.141 to €0.146 per KWh and heating rates from €0.112 to €0.118. Despite these increases, subscription prices will remain stable. The anticipated rise is attributed to higher supply costs, with the benchmark price expected to reach €44.61 per MWh. Consumers on indexed contracts may face higher bills, while those with fixed-rate contracts should remain unaffected.
Upcoming Gas Price Increases in January 2025
In recent months, the benchmark gas price has been on the rise, and January 2025 will continue this trend. According to the latest data from the Energy Regulatory Commission (CRE), consumers can expect an increase in the price of KWh starting next month.
For households using gas for cooking, the average rate will increase from €0.141 including tax per KWh in December to €0.146 as of January 1. Those who rely on gas for heating will see their average KWh price rise from €0.112 to €0.118 this coming month.
Stable Subscription Prices Amid Changes
Despite the fluctuations in gas prices, subscription costs are set to remain unchanged. For cooking purposes, the annual subscription will stay at €114.30, while the heating subscription will remain at €277.43. The CRE has established this benchmark price following the discontinuation of the regulated gas tariff, aiming to assist consumers in selecting their gas offers.
This benchmark is derived from an estimated average of the expenses incurred by suppliers in providing natural gas to residential consumers. It encompasses both supply costs, which reflect the energy prices in the wholesale market, and “non-supply” costs, including commercial expenses, transportation, storage, and supplier compensation, as noted by the energy regulator.
The anticipated price increase next month is primarily driven by rising supply costs, which are influenced by fluctuations in the wholesale market. The benchmark price is expected to reach €44.61 per MWh in January, up from €40.33 in December.
Will Consumers Face Higher Bills?
In the second quarter of 2024, an average of 16 suppliers were offering 36 different natural gas supply options. Among these, 54% were fixed-price offers, while 32% were indexed to the CRE’s benchmark gas price. However, opting for an indexed offer can still be beneficial. By the end of June, three out of the five most affordable offers were indexed to the gas reference price, one was a fixed price, and the last had a different market price indexation. To determine how these changes might affect your personal rates, it’s advisable to check your customer account or consult with your gas supplier.
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* Indexing may apply to various components of the benchmark price, including subscription fees and/or the variable cost.