You are here: Home - Household Bills - News -

Wholesale gas prices reach record high

Written by: Emma Lunn
Wholesale gas for day-ahead delivery in the UK has breached £3/therm for the first time.

The British day-ahead contract rose by £0.41, or 14.7%, to a new all-time high of £3.20 /therm this morning. Prices have surged due to low gas stocks, lower supply from Russia, colder temperatures, lower wind output, and lower generation from some French nuclear plants due to a strike.

Energy market experts said the surge in energy prices this year shows no signs of abating.

UK households are already facing rising energy costs after the energy price cap went up from £1,138 to £1,277 on 1 October.

Rising wholesale prices have led to an increasing number of energy companies going bust. Utility Point, People’s EnergyPfP Energy and MoneyPlus Energy, which collectively supplied more than half a million domestic customers, all ceased trading in early September. The past month has also seen Avro Energy and Green crash out of the market, followed by Igloo Energy, Enstroga and Symbio Energy.

Ofgem has warned that more energy firms could go out of business in the coming months.

Myron Jobson, personal finance campaigner at Interactive Investor, said: “The energy crisis is heating up as UK wholesale gas prices surge to record highs. Energy providers are dropping like flies as the sector continues to battle an unprecedented rise in the cost of wholesale gas, with prices rising well above levels many suppliers could pass on to customers.

“The harsh reality is scores of customers of failed energy firms will be moved automatically onto new, and invariably more expensive, tariffs. More broadly, the prospect of higher energy bills is a huge worry for people on the financial cliff edge, and with the £20 uplift to Universal Credit and Working Tax credits coming to an end, the nation’s most vulnerable face the dilemma of choosing between heating or eating this winter.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week