Energy Prices Seem Likely To Rise
Your Energy News Update…
As we slowly enter the warmer months of the year, we wanted to give you a thorough update on the latest energy news, and what this means for you, the customer.
In the last few weeks, we have seen a sharp rise in energy commodity costs, driven by tightening supply for several reasons.
LNG supplies from both Australia and the US have been interrupted. Australian LNG usually goes to Asia, leading to Asian countries competing for gas with Europe, when their demand is increasing to meet electricity generation demands due to summer A/C use. At the same time, production losses in Norwegian gas fields, now Europe’s largest supplier, have further reduced supply.
On the geo-political front, increased Russian attacks on Ukrainian infrastructure means more demand on European electricity. In a related development, on Wednesday Austrian gas supplier OMV announced that it was likely to have any payments to Gazprom redirected to other European suppliers as part of an ongoing dispute. This would mean the end of Russian gas deliveries for Austria and the other countries still getting Russian gas such as Hungary & Italy. Further increasing demand on other sources.
All these events have occurred alongside cooler temperatures and lower wind generation, increasing gas demand at a time when multiple events are restricting supply. While many of these events are short-term in nature, the markets are building in more risk and the future direction of costs remains uncertain. While the current sample reflects contract prices falling marginally by unit rate and/or standing charge, the market fundamentals suggest that a round of price increases is close.
Customers are strongly advised to consider any current contract offers as prices seem likely to increase.
Nationwide Energy’s field consultants and renewals advisors can provide;
- Customer Focused Advice
- A Market Review
- Updates On Available Prices
Any customers struggling to pay current rates, or who are at risk of default can contact our Billing Team for support & advice on their options.
024 7632 8995
info@nationwide-energy.co.uk
Nationwide Energy Consultants
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