European gas prices rise to more than three times pre-war levels

The Amsterdam gas benchmark rose to about €93 per megawatt-hour, more than three times its level before the Iran war began.

The increase comes as the conflict and reduced flows through the Strait of Hormuz add pressure to energy markets.

Italy has filled its gas storage to 90%, above the European average, so it is better prepared for winter supply needs.

But stored gas does not shield households and businesses from price rises, because replacement supplies still reflect international prices.

Higher gas prices could push up winter heating bills and also raise electricity costs in Italy, where gas plays a major role in power generation.

One estimate puts the average winter heating cost at €1,016 for households on fixed-price deals, while the cost for some indexed contracts could be €750-€780 for September to December.

Italy and the European Commission have agreed in principle on a gas-price mechanism for power plants, with an indicative threshold of €59-€60 per megawatt-hour.

Italy is expected to rewrite its energy-bill decree to introduce compensation for power producers, but the agreement’s effect on household bills is not yet clear.