Activity Survey 2015

Figure 3: Daily National Balancing Point Prices

1

100 110 120

2

Day Ahead

Front Winter

0 10 20 30 40 50 60 70 80 90

3

4

Gas Price (p/th)

5

2010

2011

2012

2013

2014

2015

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Source: ICIS Heren

Last year was the warmest on record in the UK with an average temperature of 9.90C, compared to a 30-year average from 1981 to 2010 of 8.80C. Every month, except August, was warmer than the long-term average. This was the principal factor behind the fall in total UK gas demand from 78 billion cubic metres (bcm) in 2013 to an estimated 70 bcm in 2014, the lowest since 1994, despite the slight recovery in gas use for power generation. This compares to peak demand for gas in the UK of more than 103 bcm in 2004. Demand for gas in Europe shows a similar trend, falling by about ten per cent in 2014 and markets across the continent remained well-supplied throughout the year.

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