Gas and Electricity Wholesale costs are higher than last week.
There had been a growing confidence in Gas and Electricity supplies as we approach the colder months and the higher energy demand. EU Gas Storage levels are now 99% full against a target of 90% for November. Despite the industrial action in Australia, there was no impact on LNG deliveries, which we have come to rely on with the reduction in Gas supplies from Russia. Our Electricity network appears to be in a better position than last year. There is a growing number of renewables available and measures in place to react to any supply issues, and more reliable Interconnector supplies coming from the continent. We have seen a very good contribution from Wind over the last week at 33%, meaning less reliance on expensive Gas at 26% from 35% in September. It is also likely that consumers will continue to reduce energy demand in reaction to high Gas and Electricity costs.
However, there was always the risk that any incidents that have an actual or potential impact on energy supplies, could have an exaggerated effect. The attack by Hamas on Israel on the 7th of October and the subsequent response in Gaza, may destabilise the region and reduce Oil and Gas exports. On the 8th of October the Gas pipeline between Finland and Estonia was damaged. Although it is not clear whether this was a deliberate act of sabotage, it does once again highlight the vulnerability of the undersea connections, as was demonstrated by the attack on the Nord Stream pipeline in September 2022.
Indigo Swan are advising customers to review contracts that end in 2023 or early 2024.
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