The Future of Gas Prices

Alistair Buchanan, chief executive of Ofgem has recently warned of ‘rollercoaster’ energy supplies. Buchanan references three main contributing factors; the closure of power plants, decreasing supplies of foreign energy and greater domestic demands.

In fact Buchanan noted that this January the 16th, the National Grid fell short to the measure of around one million homes. An old oil-fired power plant in Fawley made up the difference, however by next year this plant will be closed.

Looking to the future of energy generation Buchanan notes that ‘Wind has … been hit by the financial crisis and it will take time to reach a critical mass; nuclear will not be with us until well after 2020; and carbon capture and storage technology is still in its infancy. So that leaves gas’

Currently gas provides around 30% of our energy generation needs. Looking forward to 2020 this could rise to 60-70%. This will force Britain to ‘compete for it’s gas on a world-wide market’

With all this speculation and uncertainty over gas prices, we’ve noticed an increasingly large number of our customers opting for ground and air source heat pumps. Often these customers also have the option to utilise gas. However after taking a long term view, our customers have opted to avoid exposing themselves to the ‘rollercoaster’ of future gas supplies.

If you’d like more information on reducing your exposure to fluctuating gas and electricity prices call us on 01621 827015