Gas prices across Europe have hit a 21-month low just weeks ahead of the next quarterly price cap review from UK energy regulator Ofgem.
Spot prices in the European hub fell to €36.4/Mwh, down 3% today, while prices at the UK’s Bacton hub were just under 83p a therm.
Wholesale sales gas levels have now dropped by around 90% from September when fears over Russian gas supplies were at their height and prices in Rotterdam peaked at €342 and in the UK at 650p a therm.
In its last review on 27 February, Ofgem capped the annual cost to customers of electricity and gas at £3,280 a year for an average dual-fuel (gas and electric) user .
That was based on a wholesale price of around 270p a therm plus standing charges.
UK electric prices have also dropped from £548p/MWh in September to £91 currently (source: Trading Economics).
Ofgem’s next review is on 26 May.
Treaders said record levels of LNG imports into Europe were driving the price of gas lower with prices on the slide for seven days running.
Oil prices have also tumbled with Brent crude dropping to below US$73 a barrel today on fears the US Federal Reserve is going to turn the screw tighter on the US economy by raising interest rates again tonight.