Rising UK Wholesale Gas Prices:

Over the past week a series of factors forced UK wholesale gas prices to go up.  There are rumours that Norway are planning to divert Europipe 1 supply to Germany, also unexpected operational problems from ConocoPhillip’s Theddlethorpe gas terminal, amongst other factors such as Belgian LNG tankers redirected to Japan, PX’s Teesside plant scheduled maintenance outage in September and Qatargas rolling maintenance over the coming months are all contributing in the rise in UK wholesale  gas prices.

Wholesale Gas Prices for Monday’s delivery rose 0.55 pence to 57.10 pence per therm and Tuesday’s gas traded 1.10 pence higher at 57.75 pence.

British gas for October’s delivery rose 0.70 pence to 65.50 pence, while November’s gas increased to 72.75 pence.

Another factor that weighted on UK gas contracts on the far end of the curve was the recession fears in America. Winter 2011/2012 gas contract’s firmed at 73.85 pence up 0.35 pence, while winter 2012/13 gas shed 0.60 pence at 74.60 pence, guided by falling crude oil prices.

Meanwhile, a letter leaked from the Prime Minister’s senior policy adviser on energy and environment. warned that current policies could add 30% to consumer energy bills by 2020. According to Ben Moxham’s letter wholesale gas prices will play a major role in these rises.

“If gas prices are low in 2020, the cost of policies promoting nuclear and renewables would be high, he says, and it would not be cost effective to pursue these policies.  If however, gas prices are high, reliance on nuclear power and renewables “could conceivably” be better for consumers.” – writes Mr. Moxham.

According the Mr. Moxham’s letter there are four policies that stand out as having the most significant impact on household and business energy bills: carbon pricing (both out own carbon price floor and the EU emissions trading scheme), the new Energy Company Obligation, our Electricity Market Reform package and the Renewables Obligation.

For further information: Telegraph | www.decc.gov

If you would like more information on our range of UK Wholesale Gas Prices or would simply like to find out how we could benefit your business, simply call our energy team today on 0870 710 7560 or request a call back at time to suit.

Follow us on Twitter | Become a Fan on Facebook Or you might want to subscribe for further information on Rising UK Wholesale Gas Prices from our site.

This post has been viewed 373 times. October 20, 2010 -- UK LNG Imports Set to Rise: (1)
According to the National Grid's annual winter outlook gas demand is set to rise by 3.8% this winter. Such an increase will force us to import more liquefied natural gas (LNG) by ship from the US. De...June 29, 2010 -- Business Gas Prices Up: (5)
There are a number of reasons why business gas prices are going up, but the main underlying reason why consumers are facing an increase is that the cost of production or purchase of gas is increasing ...June 16, 2010 -- Cheapest Commercial Gas Prices: (3)
There is immense demand on the market for a cheaper gas supply, and therefore, there are a number of gas suppliers now offering attractive deals to commercial gas users. Even if you think you're payi...April 20, 2011 -- UK Business Gas Prices Fall: (1)
Backed by lower business gas prices UK energy prices also fell, with baseload contracts for Tuesday closed at 51.25 pounds per megawatt hour and May contracts traded at 51.30 pounds, 40 pence lower th...March 16, 2011 -- Gas Rises on Japan Shortages: (0)
"The severity of the situation is heightened by the possibility that the injection of seawater for emergency cooling of several of the reactors affected by the earthquake could require the scrapping o...July 29, 2010 -- Business Gas Suppliers: (2)
Ever since the energy sector was thrown open to competition and private entrepreneurs in the UK, we have seen a massive increase in the number of providers that supply gas and electricity. This has o...

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.