Continued cold snap will mean higher domestic energy prices
“UK energy prices rise again because of high heating and electricity demand in Europe, which puts even more pressure on consumers.”
This will continue to drain Britain’s limited gas stocks, increasing fears over supplies for the future.
With nationwide temperatures plunging to -20 degrees C in Scotland overnight which prompted UK wholesale gas prices to rise to their highest levels in 2009, when a fifth of Europe’s gas supplies were cut off during a political row between Russia and Ukraine.
The UK’s largest gas storage station, continued to pump into the UK network at near full capacity, according to the National Grid, leaving less to top up supplies for later in the following winter which is traditionally colder than November and December.
Britain’s increased capacity to import liquefied natural gas or LNG, recently boosted by the expansion of the Isle of Grain import terminal, should help temper the energy market fears.
There are lots of LNG is waiting to sell into it though, one UK energy trader said today, adding that with demand for gas so high any supply problem would likely cause prices to spike dramatically.
At least five tanker loads of cool guys are expected to arrive in Britain over the next few weeks, which will have to boost our higher demand over the later part of the winter.
Sub-zero weather pushed forecast demand for the day up to 453 million cubic meters, more than 100 cm above seasonal norm.
The extended cold period and rapid depletion of the UK’s gas stocks also lifted contracts further out, with the new front month January rises.
"Feel the pride."Stuart Lovatt December 7, 2010
Founder of Heat My Home.