Gas wholesale price coming down

adidas

Will this be passed onto consumers?

https://www.walesonline.co.uk/news/cost-of-living/wholesale-uk-gas-prices-fall-24893350#source=breaking-news

ariarnia

yes, the next time the cap is reviewed (now in january?) as the cap is based on the price each day since the last cap.

maybe in fixes before then. but not likely given its just as likely to go back up again as the article says the drop is in anticipation of interventions. which im assuming is european interventions. maybe the decoupling that's being talked about. not uk and truss' vat cut. but maybe i'm just a cynic and don't think opening up old tanks is that exciting?)

pochase

Due to the change from 6 monthly to 3 monthly cap the observation period for the cap for January to March 2023 consists of two transitional parts.

01/02/2022 to 01/06/2022
and
19/08/2022 to 16/11/2022

That means that 2/3 of the observation period have already gone, but also that this was at much lower wholesale prices than the current ones. Starting with April cap the observation phase will only be three month, 17/1120/22 to 17/02/2023.

The daily predictions from Auxilione were adjusted drastically to the change, especially for the April and July forecasts. Precited January increase went down from over 50% to 41%.

Astria

London (CNN Business)Russia has temporarily halted natural gas deliveries to Europe through a vital pipeline and cut off all supplies to a French utility, deepening an energy crisis that has sent inflation in the region to a record high of 9%.

https://edition.cnn.com/2022/08/31/business/nord-stream-1-europe-inflation

I don't think we'll see the price of gas staying low for long!

uksitebuilder

The media do love to stir the pot don’t they.  The "planned" shutdown is supposed to only last 3 days.

Astria

uksitebuilder said:

The media do love to stir the pot don’t they.  The "planned" shutdown is supposed to only last 3 days.

Yes, but will they actually do that, and will they actually restore it to 100% of capacity when they do.... ? I guess we'll find out.

pochase

What 100%. It was already down to 20%

The_Green_Hornet

As it is Russia's pipeline {well their end of it} they can do what they like.

maxmycardagain

The_Green_Hornet said:

As it is Russia's pipeline {well their end of it} they can do what they like.

and Ukraine might blow it up..

maxmycardagain

From another place..................

Seems wholesale prices are only a minor issue?


To my mind the biggest issue is the algorithm used to calculate the price. It used the most expensive source of generating the energy, which is gas, and that sets the figure for everyone. This was a system that was, and is used by the EU to standardise prices across the whole of the EU regardless of where you live. Spain and Portugal have already told the EU where to go with this because neither of these countries use much, if any, gas to produce their electricity, it is solar and wind.
Now since we have left the EU there is no reason whatsoever that we have to stick with this algorithm at all and we could quite simply use the average price of producing our electricity rather than the most expensive and this would cut the price cap rather than increase it.
Some of the electric company's, Octopus in particular, have suggested this already because they do not want to put up the price but are being forced to do so and thus make obscene profits.

Spies

Russia are just using maintenance to mess with the rest of Europe.