Demand for gas and power is expected to increase slowly from mid-2023 and well into 2025. The anticipation is an improvement in household purchasing power, due to falling inflation rates, will lead to a gradual recovery in residential gas and power demand. However, the high wholesale prices might play a role in limiting the extent of the demand recovery.
According to the European Central Bank’s statement at the end of 2023, the reduction in inflation and increase in salaries will positively impact disposable income for the next few years. Other data sources indicate that GDP will increase to 0.6% in 2024 and inflation will decrease to 1.9%.
The significant increase of energy costs and inflation of interest rates in 2023 have led to reductions in consumer demand, value-added consumer goods, as well as output in energy-intensive industries.