21 September 2021, source edie newsroom
With wholesale gas prices in the UK having risen by 250% since January, some green groups are calling on the Government to commit to ending gas-fired electricity generation and give more detail on plans for reducing the nation’s dependence on gas for heating.
Within the past six weeks, wholesale prices in the UK have risen by 70%
An analysis published by energy and climate think-tank Ember today (21 September) states that around 86% of the increase in UK electricity prices this year can be attributed to soaring natural gas costs.
By Ember’s calculations, the UK’s average wholesale electricity price was £37 per MWh in August 2020 and £107 per MWh in August 2021. Given that the carbon-related costs of electricity have only risen by £9 per MWh within this timeframe, the bulk of the cost increase is down to skyrocketing fossil gas prices.
Industry group Oil & Gas UK had already confirmed that wholesale gas prices have increased by 250% since January, with the steepest hike having taken place since August. Bloomberg has tracked similar statistics.