12.01.17 Gas and power prices set to rise

The last three months of 2016 (seems like ages ago) saw power prices at their highest levels in two years mainly due to us having the lowest gas reserves (what we might need if the weather goes pear-shaped – which it just has) since the mid-90s and the reduced nuclear output in France caused by unforeseen safety checks which pushed French prices up and which then caused ours to rise to a 22% year-on high. Storm damage to the inter-connecter between us and France, which left it operating at half capacity, and the National Grid suggesting that low levels of wind generation might actually leave us with a shortfall, were also contributors to the single biggest price spike of around 10% over a couple of days in November. Tight margins and poor weather are expected to see UK prices remain high as we continue to go shopping to import what we need (or might need) from mainland Europe.

Source: Utility Week – to read the complete Utility Week story please click here