The last two and a half months has seen UK wholesale gas prices fall from their peak of 640p/therm in August to today where the price is just over 300p/therm, some 53% lower than the peak.
However, the market remains very volatile, and with winter approaching it is likely that we will see a rise in prices over the next three months.
If we look at the market trends, the graph below shows a decline in price after the August peak but also a slight rise over the first two weeks of November. This is to be expected as the country enters the winter months. However, there has also been disruption in the Norwegian distribution chain that has limited the flow of gas to the UK.
UK Wholesale Gas Prices: May – November 2022
Nevertheless, if this trend was to continue it could mean that energy prices reached their peak in August and, although gas prices will be higher than at pre-Covid levels, there might be some newfound stability in the market.