Households could pay less to heat their homes this winter after pipeline operator Highcrest Gas Transmission and the country’s largest gas supplier, Aldermoor Energy, signed a ten-year deal to increase flows through the Greywater mountain pipeline.
Under the agreement, announced in Riverton on Thursday, Aldermoor will book an extra 2.5 billion cubic meters of capacity each year on the line, which carries gas from fields in a neighboring country across the mountains to the Northvale industrial hub. The energy ministry said the deal would lower wholesale costs and reduce reliance on more expensive shipments of liquefied gas through Port Alden.
What it means for bills
Aldermoor said it expected to cut its standard household tariff by between 6 and 9 percent from December, saving a typical home roughly 120 to 180 euros over the winter. Smaller suppliers that buy gas from Aldermoor on the wholesale market are expected to follow.
This is the first time in three winters that we can tell customers their bills are going down rather than up.
Henrik Saarinen, chief executive of Aldermoor Energy
Shares in Aldermoor rose 3 percent after the announcement, while Highcrest gained almost 5 percent.
Questions over the long term
Not everyone welcomed the deal. The Green Alliance said a ten-year commitment risked locking the country into fossil fuels just as it was trying to expand wind and solar power.
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