Hedging gas prices

jamei305

I was wondering if a consumer could access any product that would hedge against rises in the wholesale gas price. Do any investment platforms or CFD providers offer the ability to go short on UK natural gas futures, so that you could create your own fixed rate by paying to generate a payout should prices rise above a certain point?

Verdigris

Playing the markets solves nothing in terms of reducing CO2 output. Why not invest you money in insulation, an excellent longer term bet?

Ultrasonic

Fixed price contracts do this surely? Provided the energy provider doesn't go bust...

MWT

jamei305 said:

I was wondering if a consumer could access any product that would hedge against rises in the wholesale gas price.

For a consumer the only option is fixed price tariffs.

I 'hedged' my father-in-laws gas prices for 2 years in May this year, paying a slight premium over the variable rate at the time at 3.13p/kWh.

Obviously very happy with that decision now.

Swipe

jamei305 said:

I was wondering if a consumer could access any product that would hedge against rises in the wholesale gas price. Do any investment platforms or CFD providers offer the ability to go short on UK natural gas futures, so that you could create your own fixed rate by paying to generate a payout should prices rise above a certain point?

Most CFD platforms will allow you to short natural gas, I know mine does.

[Deleted User]

Verdigris said:

Playing the markets solves nothing in terms of reducing CO2 output. 

You are assuming that the people who are sitting at home today feeling the cold and worrying about their future energy bills actually give a damn about their CO2 output. Don’t forget the Government has just spent £Ms to persuade a fertiliser plant to restart manufacturing CO2 for food production. If the Government wants to achieve Net Zero then it has to find a way of keeping voters on side. At the moment, there are targets and aspirations but very few tangible plans. Voters are not going to pay £Ks for a heat pump that is poorly designed and installed; which will not keep them as warm, and will cost more to run. ‘Poorer and Cooler’ should be considered as the next Government Net Zero slogan.

Remember the politicians who are advocating the need for Net Zero are still running around in Government-funded diesel cars and leased short and long haul jets. They even want a new yacht to play with.

Edit. The News Quiz Radio 4. A new energy slogan:

                    Dicey; Icy and Pricey.

JJ_Egan

MWT said:

jamei305 said:

I was wondering if a consumer could access any product that would hedge against rises in the wholesale gas price.

For a consumer the only option is fixed price tariffs.

I 'hedged' my father-in-laws gas prices for 2 years in May this year, paying a slight premium over the variable rate at the time at 3.13p/kWh.

Obviously very happy with that decision now.

Me likewise Gas and Electric.

But electric just gone bust  so fix lost .