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.