Wholesale gas prices reach 6-month high: comment
Wholesale gas prices reached six-month high in the UK: comment
By Jess Ralston
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Commenting on the news that day-ahead wholesale gas prices have reached a six-month high in the UK [1] Jess Ralston, Energy Analyst at the Energy and Climate Intelligence Unit, said:
"Day-ahead wholesale gas prices have reached a six-month high in the UK largely as a result of fears of global supply disruptions because of unrest in Iran, uncertainty about the US's reaction, and colder weather across Europe increasing demand [2].
"Following years of price volatility that have left my households with debt and industry with billions of extra costs, it’s a reminder that the price of gas is largely set by the actions of foreign actors, beyond our control. The North Sea is continuing to run out of gas and won't help to lower bills or provide security of supply. The latest renewables auction this week secured a record amount of offshore wind which will cut our need for gas and so stabilise prices and shield households from future gas price spikes. Wind cut the wholesale day-ahead electricity price by around a third in 2025 [3]."
Notes to editors:
1. https://tradingeconomics.com/commodity/uk-natural-gas
2. There are other factors at play including Europe's low levels of gas in storage and high demand during cold weather in Asia, as well as the ongoing conflicts in Ukraine and other conflicts in the Middle East. The situation in Venezuela is also causing volatile oil prices, which rose before falling in recent days.
3. ECIU: https://eciu.net/media/press-releases/wind-farms-cut-power-prices-by-almost-a-third-in-2025
For more information or for interview requests:
George Smeeton, Head of Communications, ECIU, Tel: 07517 407687, email: george.smeeton@eciu.net