Dutch want investigation in high natural gas prices

Although the Dutch gas market is developing in an overall positive manner, including an increase in the gas trading volume of 35% and 15% in spot futures contracts on the APX-ENDEX in 2012, the high gas price remains unexplained. Supervisor ACM urges the European Commission to start an investigation. The request follows the Liquidity Report 2013 and the Vision wholesale strategic priorities, which the regulator has published this summer.

VEMW has called for an investigation of the gas price, which currently doesn’t properly reflect the normal heave of supply and demand on the wholesale market, the TTF. Managing Director Hans Grünfeld of VEMW: "The demand for gas in Europe decreased due to financial and economic crises since 2008. There is no indication that the gas supply is also reduced for reasons other than strategic decisions of providers in the upstream market, which is an oligopoly. In a well-functioning, liquid market the gas price should be significantly lower, but that is not the case, shows the ACM liquidity report. Consequence of this is that gas plants, including cogeneration facilities, have withdrawn, causing the Dutch industry, especially energy-intensive firms, to further deteriorate its competitive position. We have therefore urged the ACM to do a proper investigation and are pleased that the ACM recognizes the problem.”

Source: VEMW, 2 September 2013 

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