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Government cuts gas price projections

Government cuts gas price projections


BEIS has revised significantly its assumptions about gas prices over the next couple of decades. In updated forecasts issued on Wednesday 9 November, the department said that it was expecting the gas price to reach 32p/ therm in 2020––having last year projected that it would reach 52p/ therm. It now expects the gas price to reach 62p/ therm in 2030, down from 68p/ therm in the 2015 forecast. BEIS said its assumptions had been driven lower by market developments in the short term and new evidence on the long-run marginal cost of gas supply.

BEIS