Household gas prices are as high as they can make it partly because the government has given a blank cheque to the energy producers, partly because of the way the cap is calcuated (Feb23 delivery of gas was a far higher cost in August -- 880p per therm [1])
the cost of gas for delivery in the winter is high due to predicted demand outstripping predicted supply. Prices per therm in Feb are 480p [0], and while prices are dampened a little next summer, similar high costs are there the following year. This time last year though prices for Feb 23 delivery were down in the 120p/therm level. The cost peaked at 330 last December then backed off a little
Cost for Feb 22 delivery this time last year was about 200p, and for Feb 21 delivery in Oct 20 was about 40p. Pre covid it was about 80p in Oct 2019 for delivery in Feb 2020 [2], so we're running at 5 times the cost of pre-covid despite the recent falls in price.
Sensible countries have put in measures to reduce and move towards rationing gas usage (thus reducing costs), the UK has put in measures to encourage gas usage by subsidising consumption.
the cost of gas for delivery in the winter is high due to predicted demand outstripping predicted supply. Prices per therm in Feb are 480p [0], and while prices are dampened a little next summer, similar high costs are there the following year. This time last year though prices for Feb 23 delivery were down in the 120p/therm level. The cost peaked at 330 last December then backed off a little
Cost for Feb 22 delivery this time last year was about 200p, and for Feb 21 delivery in Oct 20 was about 40p. Pre covid it was about 80p in Oct 2019 for delivery in Feb 2020 [2], so we're running at 5 times the cost of pre-covid despite the recent falls in price.
Sensible countries have put in measures to reduce and move towards rationing gas usage (thus reducing costs), the UK has put in measures to encourage gas usage by subsidising consumption.
[0] https://www.barchart.com/futures/quotes/NF*0/futures-prices
[1] https://www.barchart.com/futures/quotes/NFG23/overview
[2] https://www.barchart.com/futures/quotes/NFG19/overview