The fantasy of the free market applied to Infrastructure assets is well & truly over. Only the shills for corporate greed will continue to sell this deluded fairy tale.
LNG glut raises prospect of lower UK energy bills
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UK wholesale gas prices have tumbled amid an unprecedented surplus of liquefied natural gas, raising the prospect of lower energy bills in the autumn.
High LNG import volumes from the US, Qatar and Algeria that the UK pipeline system cannot move to mainland Europe quickly enough, as well as a decline in demand caused by a warm spring and an increase in wind power, have left the UK with a glut that is driving down prices.
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The really funny part is that the UK will not get the lower prices, Europe will
Quote:
However, most British utilities buy their gas supplies in advance, meaning they are paying high prices locked in months ago, with the discount on UK gas over European supplies only stretching out to September. Samantha Dart, head of natural gas research at Goldman Sachs, expects UK prices to rise as LNG imports ease, as opposed to European prices falling significantly.
Octopus Energy, which has 3.2mm customers, said it had already bought gas for customers for the next six to 12 months, “so sadly neither we nor our customers will benefit from short-term drops” in the wholesale gas price.
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