Energy corporation decreases natural gas costs, with potential savings up to €175 for customers.
Tigas Announces Significant Gas Price Reduction Starting July 1st
Local energy provider Tigas has announced a reduction in the unit price of gas, set to take effect from July 1st. The new price will decrease from the current 7.22 cents per kilowatt-hour (kWh) gross to 6.05 cents per kWh gross, according to a company press release.
This price adjustment is expected to result in an annual cost reduction of approximately 175 euros for an average household consuming 15,000 kWh per year. The reduction in household costs, though, will depend on various factors such as the regional energy mix and the supplier's ability to pass on savings.
Martin Grubhofer, Tigas' commercial manager, stated that the new price reflects the company's forward-thinking procurement strategy, allowing them to offset the increases in fees and network charges at the beginning of the year. He assured that the company's gas storage facility, well-stocked since 2022, ensures supply security with over 87% capacity at the year's end.
Tigas has high hopes for the federal government's upcoming legislation aimed at increasing renewable gases within the overall system. Georg Tollinger, Tigas' technical manager, criticized the current lack of incentives or legally anchored incentives for the feed-in of biogas and hydrogen, which could help balance power grids.
It is worth noting that electricity generation from gas typically converts approximately 40-50% of the energy in gas into electricity. In regions where natural gas is a primary fuel source for power generation, a reduction in gas prices can potentially lead to lower electricity production costs, benefiting consumers through reduced tariffs. However, the actual impact on household costs would also rely on the pricing structure of the electricity supplier and the percentage of electricity generated from gas in the local energy mix.
In conclusion, Tigas' gas price reduction is set to take effect from July 1st, potentially leading to lower household electricity costs. The extent of the impact will depend on regional energy dynamics and the electricity supplier's pricing strategy. Additionally, Tigas has expressed optimism about the upcoming federal legislation aimed at increasing renewable gases, emphasizing the need for incentives for the feed-in of biogas and hydrogen.
The gas price reduction by Tigas, effective from July 1st, might influence the finance sector, as it could lead to lower costs for households and potential reductions in electricity production costs in regions heavily reliant on natural gas for power generation. The energy industry could also be affected, especially with Tigas' anticipation for the federal government's legislation aimed at boosting renewable gases, including biogas and hydrogen.
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