The recent military escalation and attacks in the Middle East have created uncertainty about transport through the Strait of Hormuz, which is a central transport route for oil and gas. This will not only affect the price of gasoline and diesel, but also electricity prices in Denmark. This is stated by OK in a press release.
According to the energy company, the development has led to an increase in the price of gas of 25 percent, which directly affects electricity prices in Europe and thus also in Denmark. On Monday morning, Danish electricity prices increased by 7-8 percent, while German electricity prices increased by 10 percent.
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The current unrest in the Middle East is causing electricity prices to rise in Europe - also here at home, where we are currently seeing increases of around 8 percent. As an electricity customer, it is therefore a good idea to keep a close eye on the electricity price and plan your consumption wisely. There is great uncertainty right now and the price can fluctuate greatly within a short time, says Jens Bomholt, Head of Communications at OK.
A significant reason for the price increases is that a large part of the world's exports of liquefied natural gas (LNG) are transported through the Strait of Hormuz, which is threatened by Iran. Around a fifth of the world's oil and gas pass through the Strait, making the area central to the global energy supply.
Rising gas prices affect electricity production because part of European electricity is still produced using gas. In Germany, approx. 20 per cent of electricity production is based on gas, while in Denmark the figure is approx. 5 per cent. When German electricity prices rise, it has a direct impact on Danish prices.
According to OK, it is still uncertain how long the situation will last, and thus how long the increased prices will continue. If the unrest drags on for weeks rather than days, there may be further price increases for oil, gas and electricity.
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