Because you are overpaid for gas and you are guaranteeing huge profits to importers
We will dedicate two articles to the Gas and Electricity bills to explain how the European mechanisms, wanted to create the single energy market, are stripping you. If you do not make it to the end of the month, the fault lies not only with bad Putin, but also with Brussels and Rome. Let's tackle the Natural Gas market first.
Let's start by remembering that there are multiple prices. there is the price actually paid by the producer-importer of gas, there is the European "Spot" price, at which European wholesalers buy, defined by the "Dutch TTF", a sort of gas exchange, and the national trading price, defined at PSV, virtual exchange point. However, the two prices are virtually equal. Atlantico Quotidiano explains the problem very well for those who want to do it.
The big importers, the real ones, like ENI, usually pay the bulk of their supplies on long-term contracts at much lower prices than Spot ones. The future liquid gas markets will also be based on long-term contracts, also because those who sell it must make significant investments that must be repaid, but are willing to grant prices much lower than spot and, above all, stable prices. ENI and the other importers then sell to wholesalers on the basis of PSV prices, or the Dutch TTF if foreign. In turn, these wholesalers apply a spread to you and resell the gas to you. However, we have said that ENI pays much lower prices, at least for 2/3 of its imports, so ENI produces the famous "EXTRA PROFITS" which are to be taxed at 10%.
Are there any contracts with prices unrelated to the PSV one? Yes, those at a fixed price, usually for 24 months. In this case they are excellent if the price is expected to rise. Those who closed them in June 2021 made a great deal. But now they risk being very expensive, just like making a fixed-rate mortgage when rates are high.
And the ARERA maximum protection prices? These are set by the supervisory authority, ARERA, on a quarterly basis on the basis of expectations on the prices of raw materials. So they truly protect if prices are waiting to fall, but risk anticipating the blow if prices are waiting to rise.
The system in which the market has been structured therefore, however, makes the price of gas fall to its maximum spots on consumers. This is because, by forcing, we wanted to create a market NOT based on a plurality of producers and importers, but only a plurality of intermediaries who, in reality, do not produce anything, but buy on a merchandise which, among other things It is NOT regulated, unlike the stock market one, and therefore lends itself to speculation. What would be needed is a multiplicity of producers from various sources, which offer Natural Gas directly on the market, but Germany, forcing the quasi-monopoly of supply. But you have a fake speculative market, which is what the EU was aiming for. In the meantime, you are always paying.
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The article Why you overpaid gas and are guaranteeing huge profits to importers comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/perche-strapagate-il-gas-e-state-garantendo-enormi-utili-agli-importatori/ on Wed, 04 May 2022 08:15:45 +0000.