28.04.2018

Definition and relevance of affordability in relations to gas; countries fall into 2 categories of affordability:

  • An absolutely price level, such as $5/MMBtu, above which customers in a country cannot afford to purchase the fuel either because of their income level, or because the end-user price level of the final product (especially electricity) for which gas is being purchased would be too high.
  • A competitive price level, above which customers in a country will purchase (or switch to) a competing fuel (such as coal or renewables), or will invest in demand-side measures to avoid purchasing the fuel

In practice, anywhere there is a competitive fuel these two definitions may overlap.

Gina Cohen
Natural Gas Expert
Phone:
972-54-4203480
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