European gas prices continue their sharp rise, reaching their highest level in two years on Monday. The surge is driven by forecasts of persistently cold temperatures. The benchmark TTF futures contract for gas delivery in one month was traded at €58.75 per megawatt-hour (MWh) on the Amsterdam exchange—its highest price since February 2023.
According to the price comparison portal Verivox, several factors have contributed to the sharp increase in gas prices for private households. Rising wholesale prices, an increase in VAT, and higher grid fees have all pushed up costs. Experts see no signs of a long-term decline in wholesale gas prices. “At present, there are no indications that gas prices will fall significantly in the foreseeable future,” Verivox stated. As a result, German households should expect energy tariffs to continue rising rather than decreasing.
Since mid-December, gas prices have been trending upwards, with the pace of increase accelerating in recent trading days. Over this period, the price of natural gas has surged by more than 40%. Market analysts attribute the rise to weather forecasts predicting a drop in temperatures across northwestern Europe in the coming days. The colder conditions are expected to drive up heating demand, further fuelling the price rally.
