Wholesale gas prices reach eleven-month high: comment

"Day-ahead wholesale gas prices have reached a eleven-month high in the UK, with colder weather across Europe and the US increasing demand and low EU gas storage capacity constraining supply, as well as continued uncertainty about global geopolitics. 
 
"However, renewables are limiting electricity price increases in the UK, which have traditionally been tied to gas - last year wind reduced the day-ahead wholesale electricity price by around a third [2] - an effect we will see continue as we build more renewables that shield households from the impacts of future gas price volatility.
 
"The soaring prices come as the UK and nine other European countries sign a deal to increase wind capacity in the North Sea to, as the Government says, get off the "fossil fuel rollercoaster” [3]. Years of price volatility have left many households with debt and industry with billions of extra costs, as the price of gas is largely set by the actions of foreign actors, beyond our control. Gas supplies from the North Sea are continuing their long-term decline and won't help to lower bills or provide security of supply. New drilling won't change that, so European nations are increasingly turning their focus to measures that will."

Notes to editors:

1. https://tradingeconomics.com/commodity/uk-natural-gas 

2. ECIU: https://eciu.net/media/press-releases/wind-farms-cut-power-prices-by-almost-a-third-in-2025

3. DESNZ: https://www.gov.uk/government/news/uk-and-europe-sign-historic-pact-to-drive-clean-energy-future 

For more information or for interview requests:

George Smeeton, Head of Communications, ECIU, Tel: 07517 407687, email: george.smeeton@eciu.net