Double-trouble could be in store for gas and electricity prices this winter due to gas supply problems and the Brexit effect – creating financial pressures for Welsh businesses.
Caerphilly-based energy procurement consultancy Inprova Energy has reported that winter wholesale gas prices have jumped by 7% and power prices by 5.5% following news that the UK’s key gas storage facility could be shut down until Spring 2017. This will leave the country extremely tight on gas during the coming peak winter period.
According to the latest market report from ICIS, the Brexit result has helped push prices towards nine-month highs due to the collapse in the value of the pound.
Michael Dent, Managing Director of Inprova Energy, said: “We believe that local businesses who are due to renew fixed contracts now and in 2017, should conclude negotiations as soon as possible. While nothing is ever certain in terms of energy market forecasting, there’s every indication that the market is rising, so risk averse businesses would be better to settle soon.”