Oil prices stabilising? Energy Prices Update 20/07/2018
Business energy prices in the UKSharp falls in the value of the pound put some upward pressure on prices in the UK. The country was well supplied with gas, with large volumes passing through interconnectors to Europe as planned maintenance of the Nordstream pipeline took place – reducing the flow of gas from Russia into Europe. Another week of low wind generation meant that gas-fired power stations had to pick up the slack – pushing demand higher than usual. Low wind output also caused some upward pressure on electricity prices. Despite this upward pressure on gas and electricity prices, however, all contracts did see slight falls last week. Short term prices eased off slightly, but summer maintenance on gas assets means that these contracts hold onto a premium. Winter 2018 contracts also hold onto a risk premium because of ongoing uncertainty about gas storage levels. Many longer-term fixed contracts are cheaper than one-year contracts. The continued hot weather, low wind output and essential summer maintenance means that there is little chance of a summer dip in pries. But clients who have the time may still wish to wait and see how the market develops before making a decision.
Published by Utility Helpline on (modified )
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