They slipped back to more “normal” levels in autumn. Once it emerged that Europe had built up what appeared to be sufficient stocks for winter, they dipped below 180p. However, December’s cold snap sent them back up past 330p. Some predictions had them hitting 420p by the end of 2022.The reality is that prices have been moving up steadily since Covid lockdowns eased in 2021. The fuel costs five or six times what it did three years ago, with a direct hit on consumers’ bills.
Earlier this month, the International Energy Agency published a report estimating that Europe would need around 400 billion cubic metres of natural gas next year to meet demand and ensure a sufficient cushion of stocks. However, the organisation estimated that actual supplies would fall short of this by around 57 bcm.
Even with these measures, governments across Europe will have to continue giving cash to businesses and homes to protect them from inevitable energy inflation, the agency acknowledges. However, the IEA argues that these protections should be aimed at vulnerable households and employers, rather than simply handing money out across the board.
The gas supplied through Moffat comes from Britain and from North Sea fields in Norway. In broad terms, Britain supplies much of the fuel that we import during the summer, when our neighbour tends to export gas, as it has more than it needs during those months. In winter, more of it comes from Norway, as Britain switches to importing during the colder months because many of its households rely on the fuel for heating.
Eirgrid warned that there was a “high probability of the system entering the emergency state” during these months, effectively meaning a heightened risk of power cuts. Its report calculated that, on average, electricity customers could be without supplies for about four hours this winter. However, it added that this did not necessarily mean anyone would lose power at any time.