Gas wholesale price coming down

[Deleted User]

If octopus think their 1.9% profit is obscene, they can feel free to reduce their prices.  It’s a cap, not a mandatory price.

bristolleedsfan

[Deleted User] said:

If octopus think their 1.9% profit is obscene, they can feel free to reduce their prices.  It’s a cap, not a mandatory price.

They do by virtue of £50 below cap for existing customers of 8 months+, comprising mainly of £48 per year electricity standing charge reduction credited £4 per month.

[Deleted User]

maxmycardagain said:

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.

Spain generates around 30% of its electricity from gas and another 5% from oil.  That's not far short of the UK.

If you set the cap based on the 'average' generation price, then the more expensive generators will just not run.

To avoid blackout, National Grid will have to pay them to run anyway (at a premium because they're not allowed to hedge or sign long term contracts for that service) and it will get dumped in the "system balancing charges" section of the bill instead.

Astria

I see Russia have decided not to resume gas flows through the main Nord Stream 1 pipeline to Germany, causing a surge in wholesale costs, so this price drop didn't last long!

Chrysalis

adidas said:

Will this be passed onto consumers?

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

Already is on Octopus gas tracker, last few days I been paying around 6.6p unit.

Malkytheheed

Now that Russia has basically said "no more gas to Europe" surely that is it for suprises now. Thats it over. Cards have all been played and prices must be at their utmost peak. I mean it can't possible get any worse now than "literally no Russian gas". He has played all his cards. We must be looking at absolute peak pricing and it can only come down as supplies from elsewhere increase and other forms of energy are initiated. 

Chrysalis

I am paying 6.11p unit today, so today is even lower than weekend.

Effician

Malkytheheed said:

Now that Russia has basically said "no more gas to Europe" surely that is it for suprises now. Thats it over. Cards have all been played and prices must be at their utmost peak. I mean it can't possible get any worse now than "literally no Russian gas". He has played all his cards. We must be looking at absolute peak pricing and it can only come down as supplies from elsewhere increase and other forms of energy are initiated. 

You need to check the other pipelines from Russia to Europe to see that Putin's game is far from over.

uksitebuilder

Couple that with the proposed G7 Oil Price Cap, Russia are now looking like a wounded animal and that is never good.

Check out Joe Blogs (great name) on Youtube - His latest video on the G7 Price Cap is quite informative

mjm3346

Malkytheheed said:

Now that Russia has basically said "no more gas to Europe" surely that is it for suprises now. Thats it over. Cards have all been played and prices must be at their utmost peak. I mean it can't possible get any worse now than "literally no Russian gas". He has played all his cards. We must be looking at absolute peak pricing and it can only come down as supplies from elsewhere increase and other forms of energy are initiated. 

Perhaps a peak as long as the weather does not turn colder, wonder what season is approaching?
If we get a cold winter like 2010/11 this will be nothing like the peak