AER will introduce monthly heat energy pricing for its gas and temporary heating products at the start of 2022. The reasons are the high gas price level in autumn 2021 and recent sharp fluctuations in gas prices.
Our existing seasonal pricing has protected customers from the highest gas price spikes in autumn 2021, as the heat energy price has always been set one month before the new pricing period begins.
However, the seasonal price for winter 2022, covering January–April, would have to be set when European gas market prices are exceptionally high and the price outlook for the winter is very uncertain. Markets expect gas prices to fall in spring 2022, so locking in heating prices now in December could have been unfavourable for our customers.
Existing gas heating and temporary heating contracts will remain in force, and the move to monthly pricing requires no action from customers. We will decide on the future of seasonal pricing later in 2022.
Monthly prices are based on the TTF index
Your heat energy pricing will in future be based on Europe’s most widely used gas trading index, TTF (Title Transfer Facility). Most participants in the Finnish gas market have moved to pricing based on this index during the year.
The index value used for pricing is determined on the final day of the month preceding consumption. The index price for January 2022 will therefore be determined on the final day of December 2021.
The following chart shows the actual TTF index price trend from January 2020 to November 2021 and the forecast for December 2021–June 2022, prepared in November.
In mid-November, market forecasts for the TTF index underlying the sales price of your heat energy were approximately EUR 90/MWh for January–February, EUR 80/MWh for March and EUR 50/MWh for April.
Warma’s basic charge will be calculated as before
The gas heating basic charge will continue to follow the familiar formula below, also shown in your price list, based on your hourly contracted capacity (P):
capacity 100–3,000 kW K1 x K2 x (2,800 + P x 15) EUR/year
capacity above 3,000 kW the contract-specific price list applies
The dimensionless coefficient K1 will be 1.236 from 1 January 2022. It is reviewed annually based on changes in the building cost index and other costs.
The dimensionless coefficient K2 is calculated and negotiated for each site. It depends on the heat seller’s investment and the contract duration.
The new price list takes effect in January
Our customer service team will be happy to answer your enquiries on weekdays from 8 am to 8 pm and Saturdays from 10 am to 4 pm. The telephone number is 020 690 027 and the email address is asiakaspalvelu@aurisenergia.fi.