Gas prices are likely to rise as much as 50% today due to Russia’s decision to halt gas flows through the Nord Stream 1 pipeline.
On Friday, Gazprom, the Russian state-controlled gas company that runs the pipeline said that it had found an oil leak in a gas turbine.
The energy giant did not indicate when the supply would start again.
Although Britain is not reliant on Nord Stream 1 gas flows, the suspension of operations is forecast to drive the wholesale cost up, which in turn impacts UK energy bills.
Phil Hewitt, Director of EnAppSys, told ELN: “Gas prices have opened up 25% higher today in reaction to the news about Nordstream 1.
“If Nordstream 1 does not come back on stream, you can expect higher prices for consumers in the New Year when the next price cap is announced.”