According to energy market analyst Cornwall Insight, the price of energy in the UK will drop more than expected and remain largely stable until the end of this decade.
Thanks to a mild winter and ample gas in European storage facilities, the price of gas dropped to approximately £79 per MWh in March this year, a substantial reduction from the £94 per MWh that it averaged last year. Compared to Cornwall Insights’ previous prediction, power prices are now expected to be £31 per MWh and £27 per MWh lower over the coming two years.
After energy prices stabilise at around £82 per MWh and £84 per MWh for this year and the next, respectively, the projections then see energy prices dropping further thanks to increased renewable energy generation and greater supplies of liquefied natural gas.
Cornwall Insight’s senior modeller, Tom Edwards, said the new forecasts meant that:
“…these lower costs are not just a temporary blip but are part of a sustained shift towards energy affordability. With stability projected until 2027 and further reductions on the horizon as more renewables come online, this is a welcome ray of hope for households and businesses struggling with economic uncertainties.”
Nevertheless, he pointed out that despite the fall, prices will likely remain above their historical averages for the remainder of this decade. Xgas can help you cut your energy costs by offering a modern efficient boiler installation in Wrexham and other nearby locations like Chester. Get in touch to learn more and explore the financing options.
