The yearly 7% rise in the consumer price index in the United Kingdom surpassed the greatest rise since March 1992. Experts estimate that these will continue to grow and remain at record highs through 2022.
Gas and Energy prices have remained volatile; with some countries trying to switch to purchasing Russian gas in Rubles while others continue to advocate for additional restrictions on Russian oil. The EU’s consideration of a ban on Russian coal imports has also pushed up energy prices.
Demand is projected to rise as the number of new coronavirus cases in China declines. Shanghai, China’s most populated city, has decided to allow ‘suitable activities’ in regions where there have been no cases for at least two weeks.
While energy prices are presently down marginally, they remain extremely volatile; since Russia’s invasion of Ukraine shows no signs of abating, and they might halt flows to Europe at any time, causing major supply disruption and more price increases.
This week’s gains in gas and electricity contracts were fueled by increasing demand, colder forecasts, and tighter trading in the coal and carbon markets. Wind generation has also decreased, necessitating a greater reliance on other aspects of the energy mix to meet demand.
The figures show that gas contracts commencing now, and within the next month, as well as those purchased now for the next season, are marginally lower than last month. If you are not out of contract until the summer and have waited to get a fixed contract, you will be paying significantly more than if you had locked in a rate in January when costs were as low as 150p/therm compared to 490p/therm today.
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LinkedIn: Telecom Solutions Ltd