15.12.15 Good news and bad news (pantomime-style)

Posted on December 15, 2015
Archive : December 2015
Category : Energy News

First the good news – we all know that the price of petrol is going down (yippee) but what a lot of us haven't seen yet is that this is causing UK wholesale gas prices to move down too (boo – big six take note: we're waiting). However, the bad news is that in turn this will also increase our dependence on imported gas from Mr Putin (look out, he's behind you) and others. While we all hopefully get to enjoy the benefits of cheap gas imports some time soon we have to bear in mind that this could also put the nail in the coffin for our own North Sea gas production. The price of this gas, to be delivered in 2016, is a staggering 30% lower than it was at the beginning of 2015, and could be even lower when we get to 2017, making developers think twice about investing there (boo).

Source: Utility Week – to read the complete Utility Week analysis please click here