Prices have been falling yesterday (Thursday, 23 June) despite concerns around the Nord Stream 1 pipeline, which will be offline from July 11 to 21 for maintenance; this will probably reduce the rate of storage injections. With fierce rivalry on international markets to draw supply from a currently small LNG market, unexpected changes in Russian flows continue to be the biggest risk factor for markets right now. Germany has started stage two of its gas emergency preparations due to recent cutbacks in flows from Russia.
July 22 wholesale gas prices increased by 1.8% to close at 186.84 pence per therm.
Wholesale power prices increased by 4.2% to close at £207 per MWh.
In other energy related news:
- In response to worries that the recently announced windfall tax will “harm” future investments, the chancellor has met with oil and gas corporations. Both parties have agreed to continue talking.
- Norway, the biggest producer of oil and gas in Europe and the European Commission, decided to intensify their cooperation in order to secure both immediate and future gas supplies from the Scandinavian country to the EU. The objective is to lower energy costs, increase energy independence, and lower greenhouse gas emissions costs by 2023.
- Every household in the nation will receive a cost-of-living bailout that includes £400 for energy costs. Tom Arthur, Scotland’s minister, believes it is unfair that those who own more than one home could receive bigger savings because the subsidy is given to properties rather than individuals.. Therefore, the Scottish Government is now looking at recouping the £400 energy rebate from the second home.
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