Electricity and gas bills, bad news. New increases coming?

Electricity and gas bill amounts could soon rise again.
Predicting movements in energy prices – electricity and gas in particular – is quite difficult.
It depends on numerous factors, including how the electricity is generated, what types of fuels are used, how much demand there is and how weather conditions affect production.
However, looking at the geopolitical picture and assuming the worst case scenario, new bill increases could unfortunately be on the horizon.
Electricity and gas still above pre-pandemic levels The price on the wholesale market – where suppliers and traders buy electricity – is dictated by demand levels and the cost of the last units of energy needed to meet that demand.
In practice, this means that when demand is high, gas is often used to “supplement” power already provided by other energy sources.
This is what creates a link between electricity prices and gas prices: if gas becomes more expensive, so will electricity.
read also 1,015 euro bonus to pay bills.
Here's who for This is one reason why energy-intensive businesses in Italy and the EU have faced much higher electricity costs than in the US and China following the invasion of China.
Ukraine by Russia.
Gas prices have risen dramatically and electricity prices have followed the trend.
According to the International Energy Agency (IEA), wholesale electricity prices fell in most of the world last year, after reaching record levels in 2022.
The declines were largest in Europe and Asia, but in both regions prices remained well above pre-pandemic levels.
For businesses and families, however, bills don't just depend on what happens on the wholesale market.
Distribution costs, taxes and your supplier's profit margin play an important role, as does the type of contract.
Why the cost of energy could rise (with an impact on bills) On the gas price front, analysts agree: the direction of the price will depend on upcoming developments on European soil.
The energy market in Italy and in the EU as a whole has undergone profound changes in the last two years.
Russia supplied about 40% of the gas imported into the European region, largely through pipelines.
But following the invasion of Ukraine, these flows were severely reduced and prices soared.
This has had knock-on effects on the cost of gas around the world, with governments scrambling to find new supplies.
Now things are very different.
Shipments of liquefied natural gas (LNG), largely from the United States and Qatar, made up for the loss of Russian exports.
Governments maximized storage and consumption decreased.
read also Bills, 20 tricks for saving: advice from Enea But this does not mean that prices will necessarily remain stable.
The market is in equilibrium, but it is a fragile equilibrium.
There is a risk that disruptions in supply or sudden increases in demand could cause sharp price increases.
For example, a severe cold spell before the end of winter would deplete reserves and make it necessary to import more gas during the summer.
Watch out for tensions in the Red Sea Tensions in the Red Sea area have already impacted shipments of liquefied natural gas this year.
Cargoes that would normally travel between Qatar and Europe and between the United States and Asia, using the Suez Canal, have been diverted around the southern tip of Africa, rather than passing through the Egyptian waterway, increasing costs and delivery times.
So far, this appears to have had little impact on energy prices, because there is still plenty of gas available.
But if demand increases along with competition for shipments, that could trigger a new round of increases on electricity and gas bills.