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Latest UK Business Gas Rates News

October 2013

This snapshot aims to provide business gas customers with an insight to what drives the UK retail gas prices.

The UK gas system has been oversupplied in recent weeks following the re-routing to the UK of Norwegian gas meant for France as a result of maintenance on the Dunkerque pipeline. This abundance of gas, coupled with milder temperatures and reduced demand put downwards pressure on the prompt gas price, leaving weekday sitting at around 63p.

Forward curve prices also experience continued losses this week, taking direction from the prompt market and weak oil prices. UK long range gas storage levels are currently sitting up at around 87.22% of full capacity.

The easing of geopolitical tensions in Syria and Lybia has taken pressure off the oil markets which has resulted in business gas prices falling in recent weeks.

World Energy News

Further delays on maintenance at the Njord field offshore from Norway has pushed the restart date back to summer 2014. It was originally due to come back online in September. Work to strengthen the platform structure is taking longer than expected. In a bid to gain expertise from outside explorers, India is opening up exploration for shale to foreign companies. Currently only state-owned companies can explore shale blocks.

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UK Energy News

The Times reported this week that Britain has one of the world’s fairest and most secure systems for supplying energy, according to a report by the World Energy Council, challenging the perception that we suffer high prices and face blackouts. The UK was given a “triple A” rating.

With the arrival of winter unfortunately brings the almost inevitable business gas price hikes; British Gas are reported to be planning an 8% rise shortly, however, Renewable supplier Ecotricity states its green tariff will actually undercut the big six. Founder Dale Vince said that because the company generates 40% of its electricity supply it is able to set it’s own prices for consumers.

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