Wholesale Gas Prices Surge to mid-February Levels

UK wholesale gas prices have surged to their highest point since mid-February, reaching nearly 135 pence per therm, sparking concerns about the potential impact on household bills.

Wholesale gas prices in the UK have recently achieved their highest levels since mid-February, peaking at nearly 135 pence per therm during a Friday afternoon.

This comes on the heels of a prior escalation to nearly 123 pence per therm earlier in the week, marking a six-month high not observed since early April.

The rise in gas prices is raising apprehensions regarding its potential consequences for household expenses.

Electricity costs in the UK are closely correlated with wholesale gas prices, and this upswing may result in increased energy bills for consumers.

Energy Analyst Jess Ralston from the Energy and Climate Intelligence Unit commented, “This serves as a reminder that, without a transition to renewables and electric heat pumps, the UK is becoming increasingly vulnerable to this kind of gas price volatility.

“The North Sea cannot offer much relief, as the price of gas is primarily dictated by international factors, and further drilling won’t lead to reduced bills. If the government’s initiatives for home energy efficiency had not been in decline, more families would have been shielded from soaring bills this winter, but instead, many will face the prospect of colder homes and financial strain.”