---
title: Germany’s electricity market is flashing another warning sign.
description: "The country’s one-year forward power price has surged to €122/MWh—its highest level since 2023.\n\nThis matters because the contract is a key benchmark for the procurement costs faced by household electricity suppliers.\n\nThe main culprit? Surging natural gas prices.\n\nUnder Europe’s merit-order system, the most expensive power plant required to meet demand sets the wholesale electricity price.\n\nAnd that plant is often gas-fired.\n\nSo even when most electricity comes from cheaper sources, rising gas prices can lift the cost of the entire power market.\n\nThe result: renewed pressure on households, businesses and Germany’s industrial competitiveness.\n\nSource: HolgerZ, Bloomberg"
---

[Syz The Moment](https://blog.syzgroup.com/syz-the-moment)

# [Germany’s electricity market is flashing another warning sign.](https://blog.syzgroup.com/syz-the-moment/germanys-electricity-market-is-flashing-another-warning-sign)

 Written by [Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/syz-the-moment/author/charles-henry-monchau) | Sep 4, 2026, 2:55:15 PM

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