The autumn season for our gas heating service, designed particularly for housing companies, property companies and industrial sites, begins on 1 September 2021. New heat energy prices will also take effect then, as listed below and in our price list.
Heat energy sales price, natural gas, September–December 2021: EUR 91.19/MWh + VAT.
Heat energy sales price, biogas, September–December 2021: EUR 100.07/MWh + VAT.
The total heat energy price for our gas heating service, Warma, consists of gas procurement and heat production costs. We review the price three times a year.
Autumn heating prices directly reflect the significant rise in European gas exchange prices, which underpin Finnish gas prices. No other component of your heating costs will change.
Gas procurement prices are temporarily exceptionally high
European gas exchange prices have risen throughout late spring and this summer. The increase has been exceptional, particularly during the warmer months, when fuel prices typically fall.
The European Gaspool and TTF gas indices are currently at EUR 35–40/MWh. During last summer’s coronavirus lockdowns, they fell as low as EUR 5/MWh, which was highly unusual. The chart below shows that current gas prices are also exceptional by historical standards.
We believe the current price level is a short-term response to events in gas and other commodity markets this year and last year. Current forecasts, as of 30 July 2021, suggest prices will return to normal during next year at the latest, as the chart below shows.
We monitor gas market developments closely. We want to be an easy and reliable energy partner. This also means reflecting the expected normalisation of gas prices in our own prices as soon as possible and keeping you informed about the market.
There are many reasons for rising gas and commodity prices
Alongside gas, many other commodities, fuels and emission allowances have been expensive globally in recent months, especially compared with prices during last year’s coronavirus lockdowns. For example, by late July the average monthly electricity price on the Nord Pool exchange had roughly doubled from last summer.
Europe had a cold spring, so several countries continued drawing on gas storage well into the period when refilling would normally have begun. There was also somewhat less LNG than usual in the European market in early spring, as US vessels were diverted to Asia in pursuit of better prices. This further increased storage withdrawals. Stocks remain fairly low in many countries, and gas is now being purchased to refill them. Cooling needs during the hot summer are also increasing demand.
High summer prices also reflect expectations of post-pandemic recovery and normal summer shutdowns and maintenance of gas import pipelines and LNG terminals. High emission allowance prices have also encouraged many energy producers to switch from coal to gas, increasing demand and pushing gas prices higher.
As August begins, both the market and we expect gas prices to return to normal by next spring at the latest. Current gas forward prices, shown in the chart above, support this view.
Reliable heat as a turnkey service – even carbon-neutral
AER’s gas heating service is an excellent choice for housing companies, property companies and industrial sites within the gas network area.
Warma is an easy choice for customers because we at AER make all the necessary equipment investments and take responsibility for operation.
Gas heating can even be carbon-neutral when biogas is chosen as the fuel.
Find out more about our natural gas and biogas heating service.
Information about our other energy services, including hybrid heating based on heat pumps and medium-depth geothermal energy , is available here.
Read our references.