Main Energy Report October 22
✓ The government outlined the Energy Bill Relief Scheme.
✓ Threats of further disruption to Gas imports from Russia.
✓ EU Gas Storage levels are an improved 88% full, compared to 75% last year.
As of the 3rd of October, Gas and Electricity Year Ahead Wholesale costs were lower, when compared to last month’s report. The Oil price is also down at $88 per barrel, from $96. Last week saw pressure added to prices due to a suspected attack on the Nord Stream 1 and 2 Gas pipelines. Although these had not been operating, this appears to confirm that Nord Stream 1 is not likely to resume Gas flows anytime
soon, as was hoped. These are not the only Gas routes into Europe from Russia, which leaves them vulnerable to additional disruption. This is highlighted by the current dispute between Ukraine and Russia, as Gazprom are threatening to stop flows if Ukraine continues to make claims of late and under payment of Gas transit fees.
Electricity prices are impacted by Gas due to its use for generation. In the event that there were Gas supply issues this winter, all available other methods of generation would be explored, which has meant that Coal power stations are being made available. With large numbers of French Nuclear reactors being offline due to safety issues, the UK is
exporting large volumes of power to the continent.
The Met Office forecast suggests we will generally see seasonal norm temperatures in October. Conditions will be unsettled with some showers and the potential for stronger winds.