Concerns over Russian gas delivery persisted on Wednesday (29th June) despite the encouraging signs seen the previous day from the restart of Turkstream flows. As a result, both the gas and electricity markets opened higher.
Worries were then escalated further after word spread in the middle of the day that there were no diplomatic avenues open to resolve the Nord Stream 1 turbine problems, pushing the market up further but front months abating slightly in the late afternoon.
July 22 wholesale gas prices decreased by 3% to close at 166.75 pence per therm.
Wholesale power prices also increased by by 3% to close at £202.75 per MWh.
In other energy related news:
- EU ministers reached consensus on a negotiating position for ETS reforms, and discussions will now take place in front of the European Parliament.
- As part of a first five-year plan for affordable and sustainable regional energy networks, Britain’s energy regulator on Wednesday recommended spending a total of 20.9 billion pounds, including 2.7 billion in upfront investment. They outlined the strategy for 2023 to 2028 and stated that most users may expect to pay slightly less for network expenses. The proposal has pricing limitations that limit the amount of money that each of the 14 distribution network companies in Britain may make. Additionally, it would increase customer service, strengthen their resilience, and prevent power outages.
- Official advisors from the Climate Change Committee also known as the CCC, says the government’s current insulation programme is “shocking”. According to the report, consumers now spend £40 more per year in bills as a result of prior changes to the home refurbishment programme. Therefore, the UK government must insulate more homes in order to lower energy costs and cut greenhouse gas emissions. Additionally, they recommended that the UK government remove historical renewables from electricity bills and have the Treasury pay for them in order to be fair to poorer families.
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