Gas prices shot up as freeze drives demand

Gas bills are likely to shot up as the price of wholesale gas has more than doubled due to the cold snap the UK has been experiencing for the past few days, a news report can suggest.

Wholesale gas prices in the UK more than doubled on Wednesday to their highest level in at least 10 years, as freezing temperatures across Britain drove a spike in demand and raised fears of a supply shortage.

Within-day prices rose 108% to 160p per therm, after hitting am earlier peak of 190p per therm. Day ahead prices were up 6p at 95p.

It comes as the severe cold snap continues and is forecast to worsen in some parts of the country.

National Grid data on Wednesday showed demand for gas was 28% above the seasonal norm. A National Grid spokesperson said: “Due to the cold weather some supplies have tripped but we’re also seeing some come back. We are in communication with terminal operators and closely monitoring the situation. Market prices are high, reflecting the supply and demand position.”

HeatingSave BMS– the only way to stay on top of your gas bills

The fluctuation of wholesale gas prices and likely forthcoming price hikes proves once more that the only way in which one can actually manage to achieve some significant long-term energy savings is by installing a smart, solid, reliable and low-cost Building Management System (BMS).

Building Management Systems are capable of delivering extensive monitoring and control options, compared to basic controls. They typically employ data from a variety of sources (boiler flow and return sensors, internal and external temperature sensors, occupancy sensors, humidity sensors, etc.), and enable the perfect optimization of a building’s boiler-based central heating system.

The HeatingSave BMS is designed to control and reduce gas consumption, especially when gas is used for heating purposes. It will efficiently and cost effectively manage and cost reduce your energy as well as alerting you via email or SMS messaging of equipment failures and process warnings, enabling you to take action, often before your contemporaries are even aware a problem has taken place.

Compatible with almost every make of heating system, each HeatingSave Controller can manage multiple boilers. The mobile software operates from any 3G device and displays data both numerically and graphically. Control of the heating and cooling from anywhere in the world, with an Internet or mobile connection.

If you’d like to find out more about the savings enabled by the HeatingSave Building Management System, just contact our dedicated product team, they’ll be more than happy to answer all of your questions and queries.

  1. Susana

    LPG = liquefied petroleum gas = propane. And in that sense, you”re correct. Propane cannot compete with pipeline natural gas on price, though many households and companies that are not hooked up to a natural gas distribution system use propane instead, and it works just fine. They have a big tank, and a truck from their local propane distributor comes by and fills it up periodically. Nicko2 was talking about LNG liquefied natural gas. Japan gets ALL is natural gas as LNG because there are no NG pipelines to Japan. LNG is a competitor to pipeline NG and thus can and does put pressure on pipeline NG prices. When pipeline NG is priced based off crude oil, which it often is, LNG can provide a cost effective alternative. Prices are set at the margins, and it doesn”t take much volume by a competitor to put pressure on all prices.

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