The basis of gas prices
What do gas prices consist of?
The price of natural gas consists of the same elements as that of electricity: the sales and transfer prices of energy. The energy price of natural gas is tied with price indexes to the prices of crude oil and international coal, as well as the Finnish energy price index published by Statistics Finland. The reasonability of the pricing is controlled by the Finnish Energy Authority, which defines the allowable profit from the transfer of natural gas. Transfer pricing is based on capital committed to the transfer network and the costs of operating the transfer network, but the pricing is also affected by location-specific consumption.
Natural gas is competitive
The price of natural gas is competitive, as it’s adjusted on a monthly basis and thus able to maintain its position in relation to other forms of energy. Using gas is affordable when the gas is used on a steady basis, as steady use affects both the sales price and the transfer price of natural gas.