Power prices predicted to keep burning in winter!

High gas prices are the main driver of this price hike that is not likely to abate any time soon, new research concludes

Big Zero Report 2022

Wholesale power prices are predicted to remain high for the winter season, new research finds.

That’s according to the Cornwall Insight report, which suggests winter wholesale power prices are to remain at their high levels, with the potential for price spikes in periods of high demand and low wind generation.

The analysis finds that the price hike is caused mainly by high gas prices sitting nearly 134% above the five-year rolling average.

Joe Camish, Analyst at Cornwall Insight, said: “We have not seen a typical summer for gas prices with the markets seeing prices that we would expect to see in winter.

“In fact, 18th August saw the day-ahead gas price reach 117.4p/th, the highest price point for this contact since 1st March 2018, during the Beast from the East extreme weather event.”

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