Indigo Swan Energy Report July 22
✓ Gas and Electricity Wholesale prices are showing extreme volatility.
✓ EU Gas Storage levels are an improved 65% full.
✓ Prices are still being driven by concerns for Gas supplies into Europe.
Since our last Energy Report, Gas Wholesale prices are lower and Electricity prices are higher. Costs for the remainder of 2022 are very high. Although 2023 and 2024 show better value, there is still a considerable premium, but does provide an opportunity to contract longer and reduce the shorter term % increases.
There is a great deal of uncertainty as to which way Wholesale prices will go. With Nord Stream 1 being offline over the last week, Gas supplies into the EU have been reduced. The maintenance is due to end later this week, although there are concerns that Russia will delay and drive costs higher. The EU’s Gas Storage levels have improved to 65% full, from 62% last week, against a target of 80% by November.
With the understanding that Gas could be cut off at any time, member states are looking at the option of reducing the use by industries, to prioritise resources on heating.
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