- Gas and Electricity Wholesale prices remain high but stable.
- EU Gas Storage levels are 87% full.
- Large numbers of LNG shipments are available.
Since our last Energy Report, Gas prices are unchanged and Electricity Wholesale prices are lower. Costs for the remainder of 2022 and the first quarter of 2023 remain high. Although 2023 and 2024 show better value, there is still a premium, but does provide an opportunity to contract longer and reduce the shorter term % increases.
The government’s Energy Bill Relief Scheme continues to provide a capped Wholesale cost for those that contracted from December 2021 and a discount for those not contracted. This started in October 2022 and runs until March 2023, and maybe extended for specific industries. Customers still need to monitor the markets for contracts from April 2023, when they may once again be fully exposed to costs.
Despite the cold spell and reductions in EU Gas Storage levels, they remain higher than the target set for November, and are currently 87% full. The UK’s own smaller reserves are also well stocked with large quantities of LNG being delivered. This positive position and the knowledge that next week will see milder temperatures, has helped prevent a price surge, which was expected in reaction to the increased heating demand.
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