Why are wholesale energy prices so high?
WME summarises why energy prices are trading at record highs
WME summarises why energy prices are trading at record highs
As is now being widely reported, energy prices are trading at record highs across Europe, with gas prices having risen by 220% since March, and Power prices by 171%.
This has resulted in energy suppliers and brokers going out of business and forcing some energy intensive industries to stop production due to the high cost of energy. OFGEM, the energy regulator, has increased the price cap by £139 per year, and this will almost certainly increase again ahead of April 2022.
There are a number of contributing factors that have led to the prices being at levels we have never seen consistently before.
WME, in partnership with Schneider provide an insight as to the reasons for these rises and why we are seeing unprecedented wholesale prices across Europe.