Changes in the Trading Price of Wholesale Gas
The energy market is currently awash with pricing speculation following rapid changes in the trading price of wholesale gas within the UK.
Recently it was announced that the country’s key gas storage facility called ‘Rough’ was closing.
Rough, owned by Centrica, opened in 1985 and has the ability to store up to 9 days gas supply for the UK but has become unsafe and uneconomic to operate so will close once it’s final gas reserves have been depleted.
This move pushes the UK into an even greater reliance on imports than it has presently bringing with it pricing implications.
To add to this volatility the current political situation with Qatar, who supply one third of the UK’s gas imports, and the more recent news that Norway’s Kollsnes processing plant will be implementing changes that will impact pricing and you have a environment where retail pricing is likely to be very volatile indeed.
With the price of sterling having fallen to a 30 year low, driven by the uncertainties of Brexit, our greater dependency on importing gas appears to be leading to higher retail prices.
Auditel can help offset the impact of this volatility and work with you to develop an energy strategy tailored to meet the needs of your business.