State of the Energy Market – 1st August 2022

Daily Updates

We have seen wholesale energy prices increasing slightly today. Although wind predictions are due
to pick up later in the day, there has been very little wind used to generate power so far.  There was no further news released over the weekend from either Gazprom or Siemens regarding the
gas compressor that is still currently in Germany waiting to be returned to Russia’s Nord Stream 1
pipeline.

Power

August 22 wholesale power prices dropped by 4.9% to close at £337.96 per MWh.

Gas

August 22 wholesale gas prices dropped by 5.9% to close at £351.92 pence per therm.

In other energy related news:

 It has been reported that Centrica, the parent company of British Gas, have decided to withdraw
from the UK Industrial and Commercial (I&C) customer base. The company have yet to officially
confirm their position, but the report suggests that they no longer see I&C customers as a profitable
part of the market. If true, this will mean that power customers over 10 GWhs or gas customers
over 1 million therms (approximately 30 GWhs) will no longer be supplied by British Gas. If the
report is confirmed by British Gas, it will further reduce the options for the UK’s largest customers.
Scottish Power had earlier this year taken the same decision to pull out of the I&C customer base. 

As we have previously reported, the UK entity of Gazprom will now be renamed as SEFE Energy
Ltd (Securing Energy For Europe). The rebranding is now complete and the company’s website is now also updated .For now, the company remains under the control of the German government,
but it will be interesting to see if it will be sold in the coming months. It remains one of the largest
suppliers to I&C (mainly gas) customers in the UK with approximately 20% market share. 

Latvia is the latest country that Gazprom has decided to stop supplying with gas. Gazprom stated
that Latvia had ‘violated supply conditions’ and therefore turned off the gas taps at the weekend.
Latvia joins Bulgaria, Finland, Holland, Poland and Denmark as the countries that have this year
been disconnected from Russian gas supplies

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