Friday, 20th May has been crunch day for whether the next batch of European companies would be paying Russia in roubles for gas. In what has turned out to be a welcomed anti-climax, a silent comprise of sorts has been reached between the European Commission and Russia, which has helped to settle the markets. We have seen falls of at least 8% in both gas and power rates for June 22, with prices further out also falling by smaller levels.
June 22 wholesale gas prices closed at 168.74 pence per therm on Thursday, which was a decrease of 7% against the previous day’s closing price.
Wholesale power prices for June 22 closed at £167.28 per MWh, which was a decrease of 5% against the previous day’s close
In other energy related news:
- European gas storage levels continue to increase on the back of sizeable import from Russia and Norway. The amount of LNG reaching Europe has also helped to contribute to storage levels almost hitting 45%, which means we’re about to reach 5-year average levels.
- The proposal by the European Commission to set minimum targets for European gas storage at 85% by the 1st November 2022 and 90% for each subsequent anniversary has now been confirmed. Further to this, European states without their own storage facilities will need to ensure that they have at least 15% of their average consumption requirements stored in another EU country.
- Hinkley Point C, the new nuclear facility being built in Somerset has been delayed again and is now expected to be operational in 2027. The projected costs will also go up by £3 billion. The company building the plant, EdF, have said that the UK taxpayer will not be impacted by the increase in costs, which EdF have put down to the extent of the pandemic.
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