Weekly column SOS Energythe result of the collaboration between Key4biz And SusTariffe. A consumer guide with comparisons of electricity, gas and water prices. To consult all articles, Click here.
In May the wholesale price of gas has reached the highest level of the year, as regards the PSV index which regulates the Italian wholesale market. The reasons for this increase are mainly due to the trend of supply and demand on international markets. Fortunately, since it is the summer months, theimpact on bills of this increase will be limited.
To protect yourself from any increases that could occur in the coming months, a good strategy is to take into consideration the gas offers at a fixed price: several providers allow you to freeze the cost of the gas raw material for at least 12 months, thus avoiding the negative effects due to price increases. To find out about some of the best offers on the free market, you can use the SOStariffe.it comparator and identify the rates of the most convenient partner suppliers.
What is the current price of gas on the Italian market
At the beginning of June ARERA communicated themonthly update of the gas price for the vulnerability protection servicethe service which has taken the place of the protected market since the beginning of the year and which is reserved for vulnerable customers (disabled people, over 75s, recipients of a social bonus and residents in emergency housing following a disaster).
For May 2024 bills the cost of gas rose to €0.352/Smc, 3.1% more than the previous month. The increase is essentially due to the growth in spending on raw materials, while the costs for system costs and for transport and management of the meter are constant.
The data of PSV of May 2024 And the highest since the beginning of the year and it is 17.5% higher than the February figure, when the minimum value of 2024 was reached. From February onwards prices grew steadily and the causes of these increases are to be found in particular in the dynamics affecting the demand and supply of gas at an international level.
The increase in gas prices recorded in the spring months appears to be mainly influenced by the increase in demand for LNG gas from Asian countries, the risk of stopping supplies of Russian gas to Austria and the reduction in gas flows from Norway .
By comparing the current PSV data with the gas price values of previous years, we can realize how much the bills they are increased compared to the period before the energy crisis erupted in 2022 with the start of the war between Russia and Ukraine.
Compared to May 2021, the May 2024 PSV value is 40% higher. If we take the 2022 data as a reference, however, the PSV is currently 16% lower. Compared to last year, the difference is very limited: the price of gas this year is in fact 4.4% cheaper than in May 2023.
How to avoid the negative effects of gas price increases
The energy market in Italy and Europe is experiencing a period of strong fluctuations in the cost of gas. After a winter characterized by rather stable prices, thanks above all to the mild climate which did not cause strong increases in demand and, consequently, an increase in the cost of raw materials, we are now witnessing a gradual increase in prices.
To protect yourself from fluctuations in the PSV and prevent any sudden increases from leading to a sharp increase in bills, it may be a good solution to monitor the locked price offers available on the free market.
Doing a quick search on SOStariffe.it comparator you notice how the best offers of the period of the partner operators depart from €0.42/Smcwith the cost of the raw material blocked for 12 months.
The best offers presented by SOStariffe.it for indexed price rateshowever, they have a cost to Smc starting from €0.39. The cost of gas actually applied to the bill is updated monthly based on the price trend on the wholesale market. In the event of increases in the PSV, therefore, the indexed price offers could be less convenient than the best fixed price offers.
To be able to choose the best gas offer, the cost to Smc is not the only parameter to consider. In fact, among the most important aspects to evaluate are also: fixed quote monthly requested by the gas supplier, the increase applied compared to the PSV monthly in indexed offers and, for fixed price tariffs, the duration of the offer.
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