Εuropean natural gas prices surged on Monday to their highest level since late 2022, as tensions in the Middle East and disruptions to liquefied natural gas (LNG) supplies raised concerns about Europe’s energy security ahead of winter. The increase has coincided with a sharp rise in Greece’s wholesale electricity prices, which reached a new high for 2026 on Monday, putting pressure on suppliers ahead of November’s retail tariff announcements.
On Oct. 26, European natural gas prices climbed as high as €97.64 per megawatt-hour on the benchmark Dutch TTF market, reaching levels last seen during the energy crisis that followed Russia’s invasion of Ukraine.
The latest rise comes amid concerns about a possible resumption of U.S.-Israeli strikes against Iran and reduced availability of LNG shipments from Qatar. Disruptions to supplies from the Persian Gulf have added to uncertainty, while European buyers face competition from Asian markets for available cargoes. EU gas storage facilities were approximately 74.6% full as of Oct. 25, below levels typically recorded at this time of year. Falling temperatures and the start of the heating season are expected to increase demand in the coming weeks.
Greece Among Europe’s Most Expensive Electricity Markets
Greece’s wholesale electricity price rose 13.5% on Monday to an average of €258.52 per megawatt-hour, its highest level this year and among the six highest in Europe. The price fell 13.4% to €224.38 per MWh on Tuesday, Oct. 27. The decline follows several weeks of rising wholesale prices.
According to figures compiled by the Institute of Energy for Southeast Europe (IENE), Greece’s average wholesale electricity price rose 22.94% to €229.37 per MWh during the week of Oct. 19-25, up from €186.57 the previous week. The increase coincided with a drop in renewable energy’s share of Greece’s electricity generation, from 57% to 46%, while natural gas’s share rose from 33% to 43%.
Wholesale electricity prices had already been climbing. In September, they averaged €156.30 per MWh, up 17% from August and 69% from a year earlier. The average has risen a further 20% in October, reaching €187.76 per MWh as of Oct. 27. Prices peaked at €406.48 per MWh on Oct. 20.
November Electricity Tariffs Expected to Rise
Higher wholesale costs are expected to be reflected, to varying degrees, in the electricity tariffs Greek suppliers announce for November. The increases are expected to affect the country’s so-called green tariffs, a category of electricity contracts whose prices are announced on a monthly basis. Larger energy companies that both generate and supply electricity are expected to absorb some of the higher costs, as they have in previous months. Smaller suppliers, with less room to absorb price increases, may pass more of the additional costs on to consumers.
More than 30% of Greek households have switched to fixed-price electricity contracts, known as blue tariffs, which offer protection against monthly price fluctuations. Among the cheaper fixed-price options currently available is a contract from Public Power Corp. (PPC), Greece’s largest electricity supplier, priced at €0.115 per kilowatt-hour, with a monthly standing charge of €3.50. The offer is scheduled to end on Oct. 31.
EU Ministers to Discuss Energy Security Ahead of Winter
EU energy ministers will meet in Luxembourg on Thursday to discuss how to secure energy supplies ahead of winter and respond to a possible prolonged disruption of shipments through the Strait of Hormuz, according to Agence Europe. Talks will focus on cooperation between member states, measures to curb energy demand and the resilience of Europe’s energy infrastructure.
The European Commission has already proposed measures under its AccelerateEU initiative, including more flexibility over gas storage requirements and temporary financial support for households and businesses struggling with high energy costs.
But the Commission has faced criticism for failing to establish a common funding mechanism or introduce an EU-wide windfall tax on energy companies’ excess profits. With no EU-wide subsidy planned to bring down electricity bills for all consumers, immediate financial relief will depend largely on individual governments.
What Lies Ahead for Energy Prices?
Much will depend on whether tensions in the Middle East ease and LNG supplies return to normal, as well as how cold the winter gets and how quickly Europe draws down its gas reserves.
In Greece, the outlook will also hinge on how much electricity comes from renewable sources, the availability of gas-fired power plants and electricity flows to and from neighboring countries.
If gas prices remain high and renewable energy’s share of electricity generation fails to recover, wholesale electricity prices are likely to remain under pressure.
Source: tovima.com
