National Grid 2011-12 Winter Outlook

The National Grid 2011-12 Winter Outlook forecasts that due to lower demand this winter caused by current economic circumstances both gas and power prices are likely to remain high due to a combination of domestic and European factors.

However, at home, energy prices are expected to remain high because of forecasts of a colder than average winter and the government’s failure to introduce adequate market reforms to encourage real competition in the power sector.

Nor does it help the new taxes that the government has introduced recently on oil and gas E&P, this resulted in domestic production of gas falling by 8%, though LNG imports should help cushion supply issues. The National Grid 2011-12 Winter Outlook expects gas prices to settle at around 70p/th.

To read more http://www.nationalgrid.com/NR/rdonlyres/BE947476-51DF-4D5F-8E2B-5342595157A9/49492/Winter_Outlook_Report_201112.pdf

See http://millicentmedia.com/2011/10/12/sse%e2%80%99s-wholesale-market-auctioning-%e2%80%93-heads-they-win-tails-we-lose/

For UK weather forecasts http://www.metoffice.gov.uk/news/releases/archive/2011/the-times-opinion