E.ON set to receive Gazprom gas price cut

Fix energy prices until 30th September 2017

Looking to switch your business energy supplier? Click here

Use our OFGEM accredited comparison tool to compare the whole market today.

Blue flames of gas

E.ON - one of the big six energy companies - is set to receive a gas price cut from natural gas exporter, Gazprom, according to an article published by Bloomberg Businessweek.

The price cut is set to be "conceptually the same" as the one Wingas - a joint venture between Wintersall and Gazprom - received last year according to Alexander Medvedev, Gazprom's deputy chief executive officer.

Representing Gazprom's biggest market by revenue, its European-based customers have sought purchasing contract changes following the 2008 recession; the recession led to a fuel surplus - which dragged spot prices below the contracts.

The contracts are tied to crude and refined-oil product prices but also feature a time lag - which can be as long as nine months.

Commenting on the price cut, Mr Medvedev added: "The price correction will help us sell gas in a competitive way.

"Volumes won't be released," he added.

It was also revealed that Gazprom would not be increasing the weight of spot pricing in its formula.

Latest gas and electricity news brought to you by UK Power - the energy price comparison site.

Click here to run an energy price comparison, and see if you could be paying less for your gas and electricity.

Found this page interesting?

Help spread the word and share this page with your friends and family on your social networks.