New gas price record, six times the cost of last year. Now let’s ask ourselves how many companies will open in September

While the newspapers gleefully fool around the meloni's words when she was 19, the price of gas on the TTF spot market reached € 241 per MW / h, which is about six times the price of last year.

We have now broken all records. Sure, these are spot prices, while the bulk of the gas comes from long-term contracts, but these are also on the rise, with Gazprom announcing, in spite of the contracts, that the price of gas will be increased by 60% next winter. . We will see the fallout of these prices on electricity as well, and we are already seeing them.

At this point, with these prices, the two questions should be:

  • how many companies will reopen at the end of August? Those who have fixed-price supply contracts will prefer not to reopen even, because with these gas and electricity prices many will have no economic interest in continuing their business and, quite simply, will not reopen and stop production:;:
  • what inflation will be in the face of production costs that explode due to energy costs. Those that reopen and therefore have a market will unload the enormous increase in prices on final or intermediate consumers. What level of inflation are you ready to endure?
  • the TTF is a European price only. In the US there is no such energy shock, for example. how long the companies that open before closing for foreign competition will get by.

So while they are discussing “fassists”, about gender, about submission to the Commission, about Medvedev, about gender equality, we don't know what will happen in a week or two, what will happen to our economy and what the solutions to the problem are. Which certainly do not come from the chatter of these days.

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The article New gas price record, six times the cost of last year. Now let's ask ourselves how many companies will open in September comes from .

This is a machine translation of a post published on Scenari Economici at the URL on Thu, 18 Aug 2022 20:59:53 +0000.